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We bought our place with knotweed and it wasn't really a problem, apart from the nervous wait to hear from the bank if they cared about it enough to approve the mortgage or not (they didn't care in the end, but did need to inspect it first).
Pretty sure you're right though, she has no chance of selling it to a mortgage buyer unless she gets it sorted first.
update on the flat we had an offer accepted on
knotweed has been found on the property and the lender has said they need proof that a 5 year plan is in place before they'll lend to us
the current owner appears to be claiming she had no idea it was there and has no intention of doing anything about it...we're not sure if she quite realises that nobody will be able to get a mortgage to buy her flat unless she does.
Bit of a nightmare.