From a bit of reading, the housing for the top hose is a known corrosion issue at the hose end there on the TD5.
Brother had it too(D2). We changed most of his rubber hoses with silicon types, and as reiterated by others the housing end had some corrosion on it. The new hose did stop it tho.
If you do remove the hose to inspect, of course you would also check the condition on the inside of the hose too. 
ps. the main reason for going with silicon hoses was the option to find a metal bleeder T piece section that splits the silicon hose into two smaller sections, and also the bypass hose too(rather than all one unit).
The primary concern was the fragile bleeder screw  which is easy to break on the standard hose(after much aging) replaced by a nice beefy bleed nut. 
Also, and again from reading. Have you at some point recently changed coolant?
Many people use glycol coolant, but the TD5 requires OAT(or HOAT). 
Again, brothers came to him with (most likely) glycol based, even tho the sign on the fill cap says OAT is required.
Anyhow, after a flush and then refill with HOAT, I warned him that very likely it will start to leak a bit here and there(from reading here).
And sure enough it did .. which confirmed my guess that previous owner(s) had used glycol. Some seals were changed(I think water pump also leaked) .. and been perfect ever since.
So if you think or did yourself that it previously had glycol and then OAT(or HOAT) coolant was used for replacement, they don't like each other and can cause small leaks(until they are fixed).
The expansion tank is either over pressurizing, actually getting hot .. irrespective of what your standard temp gauge is telling you!! .. or cap is old and tired allowing pressure leaking past it. 
Easy way is try a new cap, if you can pressure test the old one to confirm  .. saves wasted $s
A more experienced member will probably chime in on how to diagnose if you have head gasket issues .. ie. over pressurising the system. 
Do you have access to an honest mechanic that could do a compression test on it?
				
			 
			
		 
			
				
			
			
				Arthur.
All these discos are giving me a heart attack!
'99 D1 300Tdi Auto ( now sold :( )
'03 D2 Td5 Auto
'03 D2a Td5 Auto
			
			
		 
	
Bookmarks