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The steering lock is likely to be a worn key or barrel. I'd recommend a bit of wiggle :)

As for the leak, this could be a number of things, best bet is to clean everything up to remove old oil, then run it and tract the oil back up.

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What is the consistency of the fluid? Could it be an overflow or another fluid?

With the steering lock, have you jiggled the steering whilst trying the key?

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I will try as both of you suggested with the steering lock, also I will open up the sprocket cover and have a look at what lurks behind there, and of course I will keep you updated with pictures.

@DirtyDT The fluid seems to feel like oil between the fingers but it almost feels like its been contaminated with water.

When locking, have you got the handlebars fully to the left and pushing the key in while turning it from off to lock ?

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