oil leak from stern drive

[BobbyBones]

I have a 1988 searay 20' i/o. When the sterndrive is raised it leaks a small amount of oil from the very top of the shift shaft assembly. When I lower the sterdrive it leaks from the water intake. I'm guessing it's the foot oil leaking but can't figure out why. Any help appreciated
Thanx
Bones

 

[Docksidemarineservices]

From what you are explaining, it sounds like you need to replace the upper unit lower seal, the lower units upper seal and the shift shaft seal. The drive upper and lower have to be separated to do this.