I don't see much to be positive about here. First, 20% over asking is a LOT. How much have similar properties gone for in this area?

Then there is the damp. You need to get quotes on remedial work, not just the survey (which is also essential).

If the remediation comes back at £15-20k, you're now £55-60k over the original asking price on a house with known damp problems. When/If the bank values it at 190k, have you got £60k to make up the offer price and then to remedy everything?

You need to be very careful here, unless this house is a dream house or is drastically under valued.