It's becoming very difficult to find low mileage (and reasonably well cared for) Mk1/SPI engines nowadays, so often a hybrid is the only way to go. MPI head can be sold off to allay costs a little.
only problem is the valve stems will be worn in their sleeves if he uses the old head on the later block
im still not convinced the engine is that badly worn as in my opinion it would never set off with only 50psi a pot
i suggest using a quality compression tester
a vacuum test on tickover and 3000 revs
and also go down a large hill with foot off gas in high gear then at the bottom of the hill ,boot it,lots of smoke will confirm worn valves in their sleeves and or missing valve stem oil seals if this engine had/has these fitted as standard
Hopefully, another compression test will be carried out this week, but I took the car for a drive and floored it and once the car reached about 5000rpm clouds of blue smoke pour out of the exhaust, which surely indicates piston rings?