Front diff/axle housing covered in oil

Looking at purchasing a 1979 series 3 109. During inspection I was sent the attached pic of the front diff completely covered in oil. What has me confused is there’s oil on both the top and bottom. Obviously I’m dumb here. Is this simply a leak between the housing and the diff or something else? And yes, the swivels seals are leaking too.

I thought maybe it was actually an engine oil leak dripping down on the housing, but it looks like the motor sits too far back for that. I failed to mention I’m buying this from out of state so I can’t see it myself.

A leak means it is dripping, I would say all of them have been sweating/weeping for some time, and most live axle land rovers will look the same underneath, though that swivel does have drips on the bottom of the housing bolts.
More importantly is there any lift in the diff pinion, and play in the swivel bearings?

Over time and as oil breaks down, it will tend to travel upwards through dirt and road grime (capillary action), helped by turbulence as the car is driven

The paper gasket between diff and axle housing can leak but more likely items mentioned above. Good thing is there is oil coming out so someone kept putting some in.

Unfortunately I won’t be able to check for lift in the diff pinion until I get the truck delivered. Thanks much for the feedback.

lynall said:

A leak means it is dripping, I would say all of them have been sweating/weeping for some time, and most live axle land rovers will look the same underneath, though that swivel does have drips on the bottom of the housing bolts.
More importantly is there any lift in the diff pinion, and play in the swivel bearings?

Click to expand...

lynall said:

A leak means it is dripping, I would say all of them have been sweating/weeping for some time, and most live axle land rovers will look the same underneath, though that swivel does have drips on the bottom of the housing bolts.
More importantly is there any lift in the diff pinion, and play in the swivel bearings?

Click to expand...

Sorry. I can't figure out how to delete.

lynall said:

A leak means it is dripping, I would say all of them have been sweating/weeping for some time, and most live axle land rovers will look the same underneath, though that swivel does have drips on the bottom of the housing bolts.
More importantly is there any lift in the diff pinion, and play in the swivel bearings?

Click to expand...

The important thing is to check the swivels are shiny and not pitted. A little bit can be cleaned up but it depends how much of a leak you can live with

Thanks everyone. From what I've been told, the steering is particularly good on this truck. And, with all your feedback, I think I'll simply start by cleaning it all up and replacing the fluids in the swivel and diff and see what happens from there!

New to Series ownership, but my dad had a 74 88" when we lived in the UK. He sold it not long after we moved back to the States. My plan is to recreate/reimagine that truck. Reference shots attached.