A friend of mine had that kind of wear on his mk3 golf leather seats and used these guys LEATHERTONE - leather repairs, car leather repairs, leather furniture repairs, golf bag repairs, luggage repairs
There may be a similar company in your area?
I can't recall how expensive it was but I remember it not being too much and the seats looked brand new
you can get leather paint and do it your self .. you can buy kits also
I had the mrs old MGF seats repaired that looked worse than that... They looked brand new once they had been finished.
Only about £150 too.
Currently Driving - 2012 White 3 Door A3 170 Quattro Black Edition with loads of toys! - It's here and I love it!