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Drano
It sounds like you want validation for a purchase.
A bike is about the experience, not just the sum of its parts. It's about the feeling of freedom and being at one with the road. It's about the soul, passion, and history that resonates from those handmade steel tubes... from a time where craftsmen, not factory workers, built objects of desire.
This is the right bike for you.
Buy it.
I'd offer £350 for it without the saddle and see what he says.
My man-maths adds up like this;
£100 for the group
£225 for the frame
£125 for the wheels
Which makes £500 alright if you like it and want it now, but end up splitting and selling 'cause you don't.
Equally if you hold out you could probably nab something similar for as low as £300....
... or if you're being logical look for a 2nd hand Allez someone bought on C2W and never used, plus a new set of decent 28mm tyres (or this).