How good is the car in all other respects? Did the engine use any oil? Would you keep it if sinking money into it? That is the only justification for spending substantial money otherwise, as you say, spending money just to immediately offload will probably net you negative returns.
You could ask the garage to price you up a repair, if they are capable, based on presumed damage to overhead gear. I.e. replace all timing chain and tensioner gubbins, remove head, preferably source a complete VW exchange head, replace, retime, etc (preferred rather than rebuilding head at a machine shop).
My guesstimate is it would exceed £3k. A new engine from Skoda is £7k plus plus. I suppose a wrecked car engine is possible solution but a complete unknown as to condition and risks...A reconditioned engine? I don't know but it must be a quality experienced and guaranteed rebuilder.
What usually happens is the ratchet on the tensioner fails and holds no tension when the engine stops. Next time you start....... Crunch. There are other modes of failure of course. Hopefully, assuming the engine hasn't had severe collision it will just be the oveherhead gear.
A post in circulation at the same time as yours with the 1.8 version.