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Sounds like what VW call the brake pressure regulator.

It is only on some model's and is located just in front of the rear axle. It will need to be replaced, as it is not adjustable as far as I remember. It would most likley be VW only part.

As the car is old now the brake pipe unions will be fairly corroded, and difficult to remove. You may need to replace the unions as well. When fitted the brake system will need to be bleed, and make sure that the weight is on the rear axle. as if it's not you will be unable to bleed the brakes.

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