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You are absolutely right to pursue both avenues - the waiting list and an appeal.
It sounds as if the only issue is oversubscription, so you will need strong reasons for wanting a place at the school in question - strong enough to outweigh the prejudice to the school if they have to go over their admission number.
See:
http://www.elevenplusexams.co.uk/appeal ... -school#c2https://www.elevenplusexams.co.uk/appea ... school#c18Ideally the headteachers will support your reasons for seeking a place (rather than provide a character reference).