Make a list of pros and cons, a wish list - you hear all the time on these house programmes about 'ticking the right boxes'. Use this list when looking for a property.
When I was going to build my house the first thing my architect nephew said was sit down and make a wish list, get quotes, decided what exactly you can afford. Then pare down that list to match the budget. You hear time and again Phil Spencer saying that there is always compromise in house buying. Only you and Steve together can decide what that compromise is. You have found that although a large old house is beautiful, it takes a lot of money to keep it up to standard, and to keep it warm.
I did what Lindsay told me at and managed to build a beautiful high quality 4 double bedroom house for £138K, lived in it for 2 years till the kids persuaded me to move here beside them then sold it for more than double.(Admittedly as an accountant I knew where to find bargains and could whittle quotes down to where I wanted them, and I already owned the land as part of the croft)
I don't LOVE my house, I only LIKE it (that's my compromise), but it is a very sensible home for me as I get older - easily heated, easily maintained, with an enclosed garden, plenty of room, and picturesque too, handy for transport links of all kinds - and not in a bad part of Clackmannan (It's not ALL got a bad reputation

)