So am I right that the gear lever will move freely all the way from one side to the other across the N part of the gate but will not easily move into 1 or 2 even though it lines up with the 1 or 2 slots. However if 'persuaded' to go into 1 or 2 it will then freely go into the other as long as you don't move the lever sideways as you go through N ?
If so I suggest you look for something loose in the linkage or a mounting relating to the linkage or possibly a bush with a lot of clearance in it. It seems that the gearlever is not able to move the gear selector mechanism sideways enough to line up with the 1&2 position of the actual gear selector in the top of the gearbox. This could just be wear that got to a point where something obstructs you or something has come loose so movement is lost.
David
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