I had no idea up until last night what is ACTUALLY wrong, neither did anyone suggested so I did a google research and found the exact same symptoms and possible fix.
An automatic transmission slips only when cold. As the vehicle warms to operating temperature, the transmission's performance returns to normal. Hardened seals allow fluid past when cold, but as the vehicle warms the seals begin to function again. This transmission will need an overhaul to fix this problem.
This is exactly what is happening in my situation. gear shifting is absolutely normal n noiseless once engine is warmed up. Infact, Terry himself said there is no problem with gear shifting etc so I am assuming its the hardened seals.
I don't think I can go down transmission overhaul route as it costs thousands. There is a product called Lucas transmission fix and I am thinking of giving it a go before putting the car to auction. I am assuming no-one has ever had this problem otherwise somebody would've suggested this during atf change? Now I have to drain some oil n add 750ml of Lucas atf fix and see if this fixes the issue!