Hi Pete. With interest rates at an all time low, if you have the space, get it anyway. Its better than money in the bank. Better still if has title and paperwork. The swap is a bit one sided, the owner needs to use it as part payment towards your Triumph, not simply swap a wreck for a runner. If it all turns out to be a real lemon, lots of folks like a project. Just get it running, as such it is easily saleable.
These engines are a simple straightforward design, you will have no trouble as and when. Spewing oil means that more oil is going into the engine than being scavenged out, so you can assume the all important pressure side is working. The scavenge failure could be as simple as a jammed ball valve in the scavenge pick up pipe, easily cleared by removing the sump plate and poking the ball....BSA even mention this in the instruction books!
Wet sumping is a common phenomenon, there may actually be nothing wrong, it was just left standing. The sump filled, smoke and oil everywhere. Picture the scene, anguish, panic, So they put it away in the shed and that's where it has been sleeping for the best part of 40 years. Give it a go, it will be great to hear it run again.
Swarfy