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Ask yourself, why did you register it? Did you have a project plan in mind or you liked the name? If it's the former, follow the project. If it's the latter, your choice of a name might not appeal to others. Personally, I don't like it.
If you hurry you still might be able to get pencillead.co.uk, pencileraser.co.uk and pencilwood.co.uk... Gee, you could corner the pencil part manufacturers market in the UK!
Dang, why didn't I think of that?
I'm going to take a wild guess here that you really wanted to register pencilpoint.co.uk or something, saw that some other swift brit beat you to it, and in a panic you registered pencilpaint.co.uk...
Am I right???
You can tell us! Really, we'll understand. We all have one or two of those in our portfolios.