The only penalty is that you would have to shell out £400 on getting an initial Class1 done again at Gatwick.
Under CAA rules, you could let a CAA Class1 lapse. To validate it, all you needed to do was to go to a AME, as you would do for a normal renewel - no problem!
Under JAA, if you let your Class1 lapse, you have to undergo the initial at Gatwick..........so don't let it lapse!!
Get on the 'phone to your AME pronto
Regards
Barney