You also have to check first with the Planning depatment, as some houses (if they already have extensions or similar) will have reached their "development limit", that is you are not alowed to make it any bigger. We looked at an (OLD I have to say) property a few years back, and wouldn't even have been allowed to add on any extenion/conservatory or similar, so we didn't buy it.)
Also if you would have to raise the roof, Planning may decide that would make the house "look out of character" wihtin its environment, and wouldn't grant PP.
I would say for most bungalows it is cheaper to re-built from scratch, as you can make a new house so much more energy (etc) efficient.
One of the things to bear in mind is to look for rual building plots, if they are sold be the farmer s/he may be amenable to sell a few acres of field with it. though you probably would have to pay more than the usual agricultural prices. That's what we did.