Downsizing to a dilapidated bungalow

Don't do it Jude! I speak from bitter experience! I bought a house a year ago that "just needed a bit of updating". 1 year later: rewired, replastered, new boiler, new radiators, new bathroom, new kitchen, new doors, new drive and patio (that was the only job I'd thought needed doing when I bought it), add on the cost of redecoration, carpets and blinds and I soon found that the budget I'd set was about 30% of what I actually spent. Look for something else that doesn't need so much doing to it. Apart from anything else, getting tradespeople in to do jobs right now is a nightmare.

Not much cash for a rainy day, and yes I would have a builder doing the work, but I know how those costs can escalate. This really has to be my decision at the end of the day.

I would love to move to a Bungalow and perhaps I will in a couple of years. As I understand, bungalows are more expensive than houses, because I guess they use more land, if you know what I mean. They are becoming more popular and in demand......hence supply and demand.
I don't see the problem in spending your profit on a Bungalow that you like, PROVIDED you have got some cash tucked away, for a rainy day. Good luck!!

I could live in it, but would be quite difficult as it’s such mess, I’m just a bit frightened as I’m on my own, and everything would be down to me. I’m a fit 70 year old, but obviously a bit of a coward!

I personally wouldn't want to take on a dilapidated bungalow with all the upheaval of "a complete refurbishment and an extension". Building work and renovations always cost more than estimated, and you say that the work would use all your sale profit.

There must be a property more suitable. I would advise to keep looking.

Will you have to get workmen in to do the refurb or are you doing it yourself ?

You say "complete refurbishment". Does that mean the bungalow is not livable in as it is?

Keep looking for something more suitable.