Hi Chris,
Sad times aren't they? Sorry about losing your friend.
As for the lathe – I doubt you'll find it difficult to get rid of. Colchester lathes are very popular. The value depends on condition and accessories. If it has a number of good chucks and/or steadies they alone can be quite valuable. Beware of people who want to 'come and look' then try to cherry-pick those high-value parts leaving you with the hard to shift lathe itself. Even some small tools can have significant value which might not be apparent to the uninitiated.
If you want appraisal advice, put some pics up. This site has a classified section and there are several other good ones.