I also have a problem with the handbrake ratchet which I haven't sussed out yet. I seem to have to twist the handle anti-clockwise to twist off - yet I feel it should be the other way round. It is the type without the button. It seems to have problems staying up - and tricky to push right down also...
That sounds right Steve, mine is pull towards you and twist to release.
Controversial now, but I think the handbrake as designed is poor. You can get the 25% pass mark for the UK MoT but it takes care. In support of that statement if you look back through period road tests you'll see they also found poor handbrakes when new. Autocar quoted the S2 as "ok for parking on level ground, wouldn't hold on a 1:6 slope and very little use as an emergency brake". By the time the TCS had arrived Motor said "the handbrake is still rather pathetic, very poor".
So if Lotus sent out road test cars with poor handbrakes, you're allowed to struggle !
However there are ways forward. I think it was Richard on the Yahoo group who re-drilled the backplate to rotate it a few degrees. This means the actuating lever isn't bent to clear the trailing arm and he reckoned the revised operating arc made a big difference. That sounds a good idea if you look at the operating arc but by the time I'd picked up the comment I'd moved on. (I might be wrong on attributing it Richard, but the method I remember)
Mine has never actually failed on the handbrake but it has caused "comment" and knowing looks. Things improved slightly with a new rear cable with modified rear shoes to alter the point at which the backplate lever started to engage but then I gave in and fitted dual circuit brakes because a side benefit is that the pass mark is lower (18% ?). But actually getting it to stop the car before you get bored, you need rear discs.....
Brian