Ben
A very rough calculation for a zero-houred engine for a C152, including fitting would be £15,000. If an engine does a total of 2,500 hours, then it costs £6 per hour flown. So for your 500 hours per year, you have a notional engine cost of £3,000, on top of the other costs that you have already budgeted.
Insurance - what is the policy 'excess' and who pays it? e.g. if there is an excess of £500 per accident, would you or the school bear this cost?
I am an accountant and a PPL, and I have flown regularly for the last 19 years.
I have done the figures - I would never buy an aircraft to lease to a flying school