That is an extremely reasonable price, assuming that the engine has no mechanical issues. It is a Tempest engine,...it has a Lucas/Rover designed inlet manifold running a Lucas engine management system. This particular system was extremely reliable and upgradeable through rechipping.
On the other hand if it requires a complete overhaul, then it will cost a bomb...much more than a P6 in Australia is worth. Land Rover had a 12,000 Mile (20,000km) oil change interval on these engines, and this was not good at all for their longevity... :shock:
Ron.