Hopefully this doesn't sound like a rant, just trying to put things in perspective ... it's an 11 year old hot hatch and it's for peanuts really!
In my opinion the engine age doesn't really matter. It can't actually be much older than the original engine, so any newer is a bonus which is the only reason I mentioned it. I could have just kept it to myself but the fact that it's done 36,000 miles less than the old one, I think is a good thing! Timing belt, yeah it's a risk, but in this case it's a very small risk. The worst that can happen is, it snaps and bends valves - so you can either then sell the car with the known engine problem - worth about £600 (so you've only lost £650) or, you repair it or put a new engine in - about £650. Either way, I don't see that as a large risk, I lost £4,000 in 9 months on my 2nd hand BMW 1 series and there was nothing wrong what-so-ever with that! Add to that the cost of an oil & brake fluid service for £329!
Incidentally, the timing belt didn't snap on my original engine, one of the pulleys shattered which is difficult to account for. The timing belt, despite being the original, was nowhere near snapping. It's the risk I took though, and I paid the price, it cost me £450 for the replacement engine, another £80 for the aux belt kit and £90 for the clutch (so they wouldn't have to be done now). The car cost me £2100 in the first place from a dealer, then I had to spend about £400 on other parts - suspension, brakes all around, wheel bearings, exhaust. All of these things can go on any car at any time so they are risks you have to take in my opinion. If you're considering buying a car like this, at this price, you should probably expect to spend money on it, unfortunately they aren't driven like 1 lady owner fiestas! If people are overly concerned about a timing belt, guess they should do the first thing my mate does when he buys a new car and get it changed. I took the gamble, and it cost me about the same to repair as it would have cost to get the belt changed - but I got a much newer engine out of it at the same time. With this one though, much of the risk is removed as I've already spent the money for the next owner! The only reason for me selling it is because it's not being used.
So hopefully I'll get the £1250, if not I'll just enjoy it myself and share the mileage between 2 cars I guess!
Nick