Yeah, there is no good lock available from that position. Remember, position before submission. You really need to improve your position before you try for any finishes. (Especially since in that position, if I'm the guy on the bottom you are going to get cut pretty soon.)
I've been out from training all week with the flu. Hopefully over the weekend I'll be well enough to play with the position a bit and maybe shoot some video showing you some options.
In the meantime, here are some preliminary thoughts:
You can't just inch your way into a better position, because you don't have solid enough control. On the other hand, you can't just scramble for a better position and give up control of the knife hand. You need a mobile position which will allow you to maintain control of the knife and your opponent's body while you transition into a better finishing position.
A couple of possibilities are
1) Pop up to knee on belly. From here you can strike, disengage, move to scarf hold, use your outside shin to help pin his arm (and possibly set up some crude disarms), or move to far side side-control.
2) Pin your opponent by planting your head on his belly, piking your butt up high, walking your body perpendicular to your opponent, and getting 2-on-1 control of the knife hand. This leads to some positions that are tricky to describe in print, so I wouldn't worry about it too much unless you have the grappling experience to be familiar with this type of movement.
BTW - I'm presuming from the question that you're wanting a ground grappling approach to the problem. Obviously in a real life situation with other potential assailants around, the best answer might sometimes be to pop to your feet, kick him in the groin, then sprint to find safety or a weapon of your own.