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At that age and mileage I would guess it'll probably need more work soon or later.

JCW engines from ebay costs ~£2000-3000 (and you won't know any history about the engine with regards to servicing etc...) when I looked last year and labour costs to remove and replace engine probably £1000+. Plus you're probably be looking at replacing other parts in the engine bay as well.

Getting the engine rebuilt probably won't be any cheaper.

Unless you can get a good replacement engine and have a good mechanic working on it, it's a tough choice to choose.
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