Engine work that will cost over £1,000 is just stupid garage prices. Do the work your self and get to know some people for cheap parts. Done a full engine conversion recently including converting from Carb to Injection for £350.
Also done my Golfs gearbox, clutch, engine mount and driveshafts for £130
If I could get my old Civic back for what I payed for it that was a bargin! £300, P Reg, Honda Civic, VTech 1.5, 60k on the clocks. Had it for a run about for about a year and a half and only bought new pads, tyres for it, an mot and tax.