I have a 1937-ish Drummond M type and it is a great little lathe. Before World War 2 the M-type was the standard machine for model engineers, so they were well up to the task. It was the Myford of its day, and indeed the basis of the modern Myford. Most important is the condition of the ways on the bed and cross slide. If they are worn out, expensive regrinding is the only way to fix it (assuming scraping is beyond the capabilities of the beginner)
I see them on eBay UK quite often for low prices, 100-300 pounds. Parts also are often advertised on eBay UK. The metric threading gears are hard to find but the others easy enough to come by for anywhere from a few quid to 10 or 12 on eBay. Your main expense will probably the electric motor and the tooling such as four jaw chuck, centres, driving plate, tool bits, drilling chuck etc etc. It is always cheaper if you can get these with the lathe.
The lathe in your pics looks like a 1921 to 1924 M-type which had different main bearing locknuts and pinch bolts from the later models. It also has the original 21-24 toolpost, which will hold down modern tools just fine, with a few packing shims to get centre height.
The drawback of the 21-24 model might be the absence of the carriage traverse handwheel and rack. It looks like there is no quick engage on the half nuts so you have to use the leadscrew handwheel to move the carriage back and forth and use the dog clutch for screwcutting, engaging feed etc. So in my book, not as convenient as the post-1924 set up.
Flat belts work just fine on small modeling stuff if you use modern belting material that grips better than the old leather, or pull the mandrel and fit an endless poly-V belt like drives the alternator on many cars today.
Look into what an electric motor will cost you too. I run mine one a 1hp, but originally they were often used with a half horsepower job.
There is also a very good Yahoo group called Drummondlathes at Yahoo that has lots of info on these old dinosaurs. Lots of guys still using them as their main lathe.
150 pound is probably an ok price if it's close and convenient as you say but you could try an offer of 100?
Edited By Hopper on 28/08/2013 08:49:11