Good advice from Abasmajor there. The barrels on these old BSAs are screw threaded to the breech and some strong thread seal should sort that problem for you.
The BSA will take a lot of abuse and still work but the only way to tell is to use it. Once it is back together and cleaned up, possibly re sprung and washered, she may well work fine. I hope so anyway.
John
Currently looking for Baikal Makarov pistols with the following prefixes to the serial number: 98, T01, T09, T21, T22
Prefer boxed or cased but will consider loose examples too.