If it is indeed LP, you can always supplement with glucosamine, I use Cosequin.
Cosequin Regular Strength (90 capsules) Uni was diagnosed with grade 3 last summer and had only lifting that one time after jumping in the waves at the beach. She does well on cosequin, and I don't ever plan on having surgery on her. I would really look at surgery as a last result, many yorkies have done well on supplements. Understand that this does not FIX the problem, but it can help.
Also I see you estimate the grade at 1 or 2, you really shouldnt' consider surgery for grades 1 or 2, even grade 3 is debatable and depends on each particular case.