Sincere thanks for your support, it does mean a lot as I've been self loathing last couple of days. On the bright side I've some money on the side and hopefully AA garage cover will pay some part of the repair cost. It would have been a lot worse if this had happened at other times in my life.
@Sean197 Cheers for the info on Renparts, will follow your advise.
Assuming my lower engine (block) is fine and AA contributes £500 into the costs, do you see any reason for not repairing the current engine and going for a replacement (second hand) one? My engine used some oil (2-5 litres per 7-9K miles depending on driving conditions) but was absolutely fine otherwise. Never had it dyno'd but it seemed to pull well.
I really do love this car and want to get it to 100%. I will keep it at least a year, very likely two years. Depending on the condition of the block (whether the pistons are fine) I could as well stretch it a bit and get all done at once. Regards 'refreshing' the suspension, I'm thinking ball joints, top mounts, drop links, shocks and springs. Is there anything I'm missing? Currently there's some light knocking on bumps and potholes (possibly top mounts?) and it's really harsh on low speeds but no leaks on shocks or any other acute problem.
I don't need / aim to lower the car significantly, 1-2 cm would be great but even that is not a necessity. I would love to be able to adjust damping though, as I do a lot of driving for work therefore I'm kinda inclined to the idea of getting yellow Koni's with Eibach Pro springs. Does anyone know if they're available for late 200 cup suspension? I've messaged this seller but he's sure it doesn't fit cup suspension:
https://www.ebay.com/itm/332459357677?ul_noapp=true
Many thanks in advance.