I have a bad feeling the previous sellers have no money to compensate me so I could
end up with no financial recompense.

Thay have your money, you paid more than it was worth.

I am sure that most people would therefore keep quiet about this

Most people would.
But are you going to do what 'most people would do', or are you going
to make an weigh your conscience and make an individual decision? I'm
interested.

Baa.

I think that does justify me misrepresenting when I sell -

No. It would make you as dishonest as most people are.

Besides which, your neighbours know that you know.