The surest and probably safest option is to replace the master cylinder.
However replacement seal kits are available but these will only be successful if the cylinder bore is undamaged. If there's any scoring then new seals will have a short life.
If you are paying to have the job done then the work involved in removing and replacing the master cylinder is the same whether you are fitting a new one or putting the old one back after overhaul. Although the seal kits are relatively cheap, your mechanic's time spent overhauling the old cylinder may not be. Unfortunately he or she won't know if it can be repaired until the old cylinder has been dismantled. This cost could go a considerable way towards the price of a new cylinder
A few things to bear in mind. Your car is an automatic and it could be argued tha you are rather more dependant on the brakes than you may be with a manual transmission.
Phase 1 V70s are getting thin on the ground and are beginning to be sought after and a T5 is likely to generate some interest so it may well be worth spending the money for a new cylinder. Not that this helps in the slightest if your budget is tight!
I run a 1998 V70 Tdi auto with 228,000 mile on the clock. If it were me I'd bite the bullet and replace the cylinder but I do have considerable affection for the car having owned it for nearly 20 years and I'd be doing the work myself.
Hope this is of some help. Do let us know how you get on.
Martin
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