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Sam_w
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You should be able to leave parts of it (like the lovely stone wall at the back) and build within the same footprint but I'd advise getting rid of that cracked concrete/mud/WTF wall and rebuilding any parts that are built from the same material because a) it's fucked and b) let's say something happens and you do need to sell - lots of buyers will be scared off.
What's the roof made of?
Anyway - sure there are lenders who will provide a mortgage secured on the value of the land alone if you provide plans.
Either way, you've got a project on your hands with amazing potential. Imagine what you can do in that garage. Good luck.