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Suspension bushes, ARB drop links, brake discs and pads, new clutch, leaking dampers, etc etc. New pads, a new clutch and a set of ARB droplinks could easily come to £2k, and might well be required on a bargain basement car which hasn't had that much preventative maintenance carried out. Cheap cars are usually cheap for a reason, after all.
Yep. Good idea. There are a few potential issues to Google up on including popping out of 2nd and IMS bearings, but avoid those and they're an amazing car for £8k.
There is no such thing as a £5k one though. The ones that are £5k are £8k ones that need £2k spending.
As @danstuff says, @Dammit is just being a bit silly.