Over the last 3 years it has started to come back and the new growth looks very healthy.
It has some potential, but most of the new growth are suckers. Try do define a main trunk (with a primary branch perhaps?) and get rid of the others.
What type of soil mix should i use. How much of the garden soil surrounding the root ball should i leave with the plant for now.
I would prepare a bonsai mix with non-organic components and good drainage, like leatherback explains
HERE
.
Should i cut back the roots when potting or leave as much as I can dig out with the root ball.
I would take as much roots as possible from the ground, comb them, and prune the largest ones, the ones going straight down and the longer ones, with good bonsai shears, but leaving some original soil. Try not to harm the finer roots during this process.