Exchanged contracts, then found out house was contaminated with asbestos

Hi, i have problems with an house i'm buying, i'd viewed the house, all looked ok modern brick buiding with out dated kitchen/bathroom, i was going to refurb and update the fittings while living there, i exchanged contracts, then went to have a look round the outside the next day as it was empty, i got talking to the woman across the road who informed me the house was wood frame and asbestos, the brick was just built in front of the old building to join two extensions buit in the 80'S.

I contacted the estate agents who contacted the seller, who said the bungalow had been rebuilt on a new footprint around the existing structure and removed, i got survey done that confirmed what the woman had said the existing contaminated buiding was still there, they said walk away too expensive to repair.

I had a meeting with my solicitor, i told him i didn't want go ahead an complete, he told me i'd loose my deposit, have to pay there legal cost and a bit of interest, as i'd already paid the deposit that was the bulk the remaing would be around 2k, i'd already informed the estate agents of the results of the survey as they phoned me while i was driving to the solicitors office, i expect they passed on the info to the seller.

I asked the solicitor should we contact them to inform them i won't be going ahead and offer to pay the expenses and settle, he said no let them try to complete on the date and when it doesn't they will try 10 days later, then settle. This was two weeks ago, i'd just about come to terms with loosing my deposit.

I received a phone call from the solicitors office yesterday, i'm Mr A, i will be handling your file Mr X is on holiday, you should get a survey done if your worried, i told him i'd got one done and i wasn't going through with purchase, he tried talking me into it, i told him there was no way i was going to complete, he told me along with there legal fees they may also try to recover any future difference in the price of sale may be 100 to 150k, i told him if that happens i will go bankrupt as i'm not borrowing money to buy a contaminated house, he then said we should write to them to negotiate and made an appointment for me to go over the details of the letter.

So whos advice is correct the first solicitor thats on holiday or the solicitor now looking after the case.

I know one thing i will never go ahead no matter what happens, should i send the sellers solicitor an email to say i'm not going to complete as the house is contaminated with asbestos, short ans sweet, don't know what to do now with change of solicitor who doesn't really know the facts he got the property address wrong and didn't know i'd had a survey done, What should i do i need help.....Thank you for reading my post