Turbo Intercooler Problem

My Freelander (2006 plate) with just over 175,000 miles on the clock lost power recently and the AA man and subsequently my mechanic have said that the Turbo Intercooler has gone. In addition my mechanic has said that there is an oil leak. He said it would cost around £1,500 to £2,000 to strip it down and replace the intercooler and given the mileage it may be that the engine is probably knackered. His advice is to cut my losses and get what I can (he suggested around £1,000) for scrap and parts. I know nothing about the inner workings of a car - can anyone tell me if this sounds like the right thing to do?! Many thanks

For an intercooler that sounds very expensive to repair!

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