I suppose this isnt the place to tell you that if your wife hadnt driven it without any oil in then it could quite possibly of kept on going for another 120k miles without batting an eyelid - my Bora with the same engine as yours hit 180k today!!!

If it was me I'd buy the engine & fit it myself - and make sure the wife provided lots of beer whilst I was doing it. LOL!
Am sure theres enough scottish helping hands up there to do that with you - then for £650 you've got your car back.