Re: Merc 850 Oil Leak
Your waterpump has some seals and gaskets for the gearcase that are leaking badly. You need to drop the lower unit and replace the leaking seals and gaskets. If you have not put in a new impeller in a couple of years, this is the time.
The only seal that does not come with the impeller repair kit is the driveshaft seal. You need to buy a new waterpump base to get this seal. You should be able to buy a combo kit with the impeller and waterpump base.