We've just done a total refurb - and lived to tell the tale. It was quite stressful, but not too bad really and certainly less stressful than buying a house and doing it bit by bit. Like yours, our place was untouched for 50 years and needed EVERYTHING doing to it. It had damp in every room - rising, penetrating, condensation - you name it, it was dark and musty but we loved it. It was in the perfect location and we knew that we could make it work. We ignored various family members took us aside to tell us we were making a big mistake and didn't listen to the builders who told us it was going to cost 70/80 grand MINIMUM and luckily found a recommended builder who thought he could get it done in 6 weeks for 50k.
Best thing we ever did. In no particular order (and without an architect), he put in a loft room, fixed the roof, put in a new damp proof course, treated all our timber for whatever they treat timber for, did a total rewire, put in a completely new central heating system, replaced all the lead piping, repointed outside, took all the wallpaper off inside, moved some walls, replaced some ceilings, reinstated all the fireplaces, put in new windows, new front door, fitted a new kitchen and bathroom (which we sourced really cheaply - from Ikea and Plumbbase), sanded all the floors and painted everywhere. For 50k - including all materials. Took him 8 weeks in the end, but that's mostly because we naffed around for a couple of weeks agonising about the floorboards.
The place looks bloody amazing. We've lived in it for a couple of months now and we're still amazed at what we achieved in such a short space of time and with a (relatively) small budget.
We weren't living in it at the time though - we stayed with relatives for a couple of months till we couldn't stand it any more the place was habitable.
You have to be totally on top of your project though - we had spreadsheets coming out of our ears and visited the site every day to check on progress / make decisions and whatnot. I literally spent every spare moment sourcing door handles / toilet cisterns / kitchen draws but it was totally worth it!