Unless something really radical happens to electricity generation, heat from electric will always be more expensive than other sources, as it's the highest 'grade' of energy we have available.
Be careful you don't confuse "KWh per year" (which gives you a rough estimate of your bills), and instantaneous KW, which tells you the size of the boiler you need to keep your house warm on a cold day. Also beware of these calculations, as the underlying assumptions may not match the way you actually live. We cheerfully heated our home through some very cold winters with a 12kW range and 8kW wood burner. However, when we had the calcs done, the requirement came out at 35kW, since they were based on keeping the whole house at 20degC during the coldest winter. Frankly we'd have to win the lottery before we even considered trying that one, and as a result, our actual energy bills are 20% of what the calcs said they should be!
If it was me, I'd insulate and draft proof as much as possible, then calculate the total instantaneous KW as accurately as I could (calculation spreadsheets etc are available, or get a quote for the whole place from a heating engineer, which will include the size of boiler. As per my experience above, it won't be perfect, but it's probably the best guess you'll get, and your lifestyle might be more 'normal' than ours
). You can then work out the best way to achieve the total KW output from the heat sources you have available (existing boiler, new boiler, wood burner, whatever). One thought - if you would otherwise go with an electric boiler, how about electric underfloor heating in the new extension, assuming it's still to be built? If you also beefed up your instulation, would that give you enough total kW to keep your existing boiler perhaps?
Have you considered a wood pellet boiler though? They do require a bit of space for a pellet store or similar and sometimes also a thermal store (big water tank). They are hence very expensive to install. However, at the moment, the UK government will pretty much pay for the whole installation for you over a seven year period, through the "
Renewable Heat Incentive" scheme. (Just be aware if you look into this that there are some good reputable companies out there, and there are also some terrible ones. When we looked into it, we had a couple of salesmen round who were selling via deliberate lies and distortion. Buyer beware and all that).
Good luck!!