You do have redress under the Sales of Goods Act. Even though you purchased it from a private seller it still needs to be properly described S.13.
You need to provide evidence as to the description, the forum advert or the ebay listing will do, but it would need to state that it was working, a good runner etc.
You may also need a statement/letter from an expert, say the guy at the LHS on when/what/why the failure of the engine happened etc.
Then I would write to the seller giving 14 day to either offer a refund or replacement engine and state if he does not comply you will pursue legal action!! Send this letter recorded and keep a copy.
If he does not respond you will ultimately have to start legal action at the small claims Court (not that expensive and no need of a lawyer).
Hope this helps, but my civil law knowledge is very, very rusty
Alex
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