Had you bought through eBay, then you would have a lot more comeback that you have now. You can try contacting Consumer Focus for further advice but I suspect that, unless the seller is willing to do more, then you will need to sort the bike out yourself.
Does it overheat? If so (and if you got the fan working), from what you say, it sounds like the cylinder head gasket may need replacing. I have not done this on a bike but, on a car, it would be a good afternoon's work with maybe £30 - £50 materials. If the bike is still running, you can fill up the coolant, start it up (or just turn it over) while cold and carefully take the cap off the coolant reservoir. If the cylinder head gasket has failed, you will see the coolant bubbling up and down as the cylinders move. You may also see engine oil mixed with the coolant. Depending how bad things are, it may be possible to keep using the bike for a while making sure that the coolant is always topped up and keeping an eye on the temperature gauge although a fault with the cylinder head gasket is only going to get worse. Once you know the fault, you can talk to a few garages but there is no need to pay £800 for an afternoon's work. The problem is very unlikely to be more serious than a failed cylinder head gasket.
You do need to appreciate that it's not just the seller, but also any garage that you approach, who will want to make money from you.