Buying my first flat - should I continue with all these issues or walk away?

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I would personally walk away, sounds like too much of a headache and I would be worried about costings. However from your pros list it sounds like you would be able to manage. If you would be happy to live there and feel like you're not being mugged off then why not buy it!
 
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Thank you!

I'm going back to look at it again to make my final decision. It will be with my head. Don't think I will ever walk in somewhere on my budget and think it's amazing.

The problems could mostly be fixed, but do I want to fix them? Loads of that just comes with home ownership. Does seem like a flat is more difficult to sell than a house as any potential issues will more likely be flagged up