Unless the current structure has any historical or architectural merit, I think I'd knock and start from scratch.
I'm currently renovating an old farmhouse. We went with renovation rather than demolition as I really like the shape of the house, it is big enough for us and I find it hard enough to make the 100s of decisions involved in the process, if we were building from scratch I'd find it impossible to finalise a design.
However, we have only, really, kept the four external walls, the interal chimney and the floor of the upper floor. The ground floor has been dug up for damp proofing and insulation, we've lost about a foot off each room adding insulation to the walls, we replaced the roof, the windows and the doors and knocked the internal walls. If we have saved any money over building from new, it is marginal.
A 1970's bungalow will become a 100 years old at some point and what today might seem commonplance and of no value may at some point be seen as an examplar of something built at a particular time and place.
No-one who bought Superman or Batman comics in the 1940's thought they would become worth thousands of dollars as collectors editions.
That having been said, a clean slate is a good place ot start, but your means may not support a demolition and rebuild.
There is really no point discussing what you can do until you have a price for whatever options you're looking at including demolition costs.
More important you need to engage an architect ot help you discuss the options available to you in the future.
You can see several recent posts from me about what an archtiect can bring to the table in this regard.
ONQ.
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All advice on AAM is remote from the situation and cannot be relied upon as a defence or support - in and of itself - should legal action be taken.
Competent legal and building professionals should be asked to advise in Real Life with rights to inspect and issue reports on the matters at hand.
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