I will take a look at the Dremel. Although I see you can pick up a hot air rework station on ebay for about £30-£40. I am sure it's not the best but might be passable.
I'd skip the Dremel (mini butane torch) as there's no temperature control.
As per methods, see above. But since I have a hot air rework station, I'd opt for that first since it can get the heat under the component and is easy to do. Another good one that's easy & feasible for this particular package would be the electric skillet method. Either of these methods will require a good quality solder paste, such as Kester's Easy Paste 256 in 63/37 (available in a rework friendly size syringe from a 3rd party company here in the US, CML Supply).
If you'd like to find a high quality station that won't cost what the major brands do, I suggest taking a look at a
Quick 861DA (the
A at the end designates it's a 220V, UK plug model). BTW, if you search for
Quick 861DS and
Quick 861DW, there's a good bit of information that comes up, including internal photos.