Skoda Octavia engine replacement

Hello fellow Škoda owners. 
 
I am new to this forum and have quite a dilemma with my engine that I would love some advice/feedback and opinion on.
 
For context, I have an Octavia vRS MKIII (2019) that I own, 51,000 miles on it. The car is in excellent condition, regularly serviced and maintained, within the last 3 months having had new front and rear brake pads. It is high spec with rear-view camera, electric tailgate, flat (multi-level) boot floor and adaptive cruise as optional extras. 
I recently had the car valued that came in between £16-£19k at various locations. 
 
Now onto the dilemma. The car is out of its 3 year warranty and I opted out of extending it due to monthly cost. 
Around 3 weeks ago, on a short journey from my home, the car engine started knocking, initially thinking it was a stick under the car. 15 minutes into the journey the knocking got louder and the engine lost almost all power and broke down. The AA couldn’t resolve and recovered the vehicle to take to the dealership. 
 
Given zero issues in the past and recent health checks, it came as a shock when they told me the engine seemed irreparable and suggested a replacement. They also offered an engine strip to try and better diagnose the problem (£1,000 job) which I had to agree to. The outcome was that a replacement was required with following issues:
 
- Large amounts of metal found in oil sample, large amount of swarf in oil filter.
- Crankshaft seized multiple points. Bearing seized/spun causing bottom end knock. 
 

Replacement engine now required, at a huge £13,000 expense with labour etc. They have contacted Škoda customer service to see if they will significantly contribute to the new engine replacement, but customer service have asked the dealership for specific crankshaft photos to decide, a further £900 job to complete. There is no guarantee with these photos that Škoda customer service will be able to contribute/support the replacement anyway. 

Now, I am out of warranty so trying to understand if I am stuck between a rock and a hard place here. 


Am I forced to pay the £13k (more with recent work) given no warranty? 



Given car was well maintained, carefully driven and recently checked, is this something Škoda should be helping more with? 
 
I have looked at alternative outcomes. Do I just paying for the fix and sell the car with a new engine at a premium (apparently increases the value). Also should we decide not to fix it, do I sell it as a non-runner as we have had offers between £5k - £9K for the engineless car. 
 

 
Any advice or guidance is welcome, even if it means I need to stomach the inevitable.
 
Thank you.
 
Mr J.