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I genuinely believe that these can be done on a budget - 32k exceeds the value of the car and may even be a 'go away' bid though I suppose that is what it costs for everything. OTOH, 13k for an MG engine puts in race engine territory. You should be able to do it for a couple grand tops. Keep us posted.
We all understand money, the driver car I started with ( 73 TR 6 ) was $ 3,500.00 I found two other parts cars for another $ 150.00. Car one had a bad frame I saw later so off the parts car came the frame fenders from another dash and gauges a mix of all. All drive and trans & diff parts came driver car all wheels brakes etc from a mix as to their condition ( Rust-broken - and just plane shot ) No rust to body but hood need much work as driver had been in a wreck that why frame a fenders were poor and parts cars were good. Like you I did not know this when I bought the driver.
I had a three car garage oversize with lots of room and I filled in part time in a British car shop giving me acc. to tools and help on my weak knowledge of some of the TR 6. As I now had two places to work on the TR motor trans etc. there frame body at home I did the frame up restoration in one year. I can say I did it all my self with help from a friend or two. Paint and seats and machine shop work were the only outside work. As for the money I quit adding it up at $ 10,000.00 so no idea of total cost ( I know that does not help you but it was 27 years ago )
My wife baby sat the people next to us for $ 60.00 a week she payed the cost. other money came as trade for my time at the shop. None of this may fit you or your car but it was a great experience for me and I know every nut and bolt of the TR 6.
If I had a word or two for you to think about. You have a rare car and the experience will last a life time. It need not be prefect it need not be completely true to the C but it will be yours . Madflyer
I completely rebuilt an MG TD in my spare time in an unheated one-car garage. Took me about a year because I had to wait for woodwork and 2 fenders to be handmade. Don't remember the exact cost because my diary was lost when I moved in 1982 but I sold the car for $9,500.00 and made some money on it - like Wheeler Dealers. Forget the 600-odd hours I spent. I did farm out the paint job to a local shop owned by a skiing buddy of mine and he gave me a great price you couldn't touch today unless you go to Maaco and a valve job for $45.00 by a racecar mechanic I knew. If you have a place to work and some good tools and some spare time, you can get a book to study and do a lot of work yourself. If you don't want to try it yourself, perhaps you can find a buyer in the UK willing to take it off your hands.