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there's no way you're getting the full cost of works knocked off
completely agree with this.
old houses always need work, some more than others and this one looks like being towards the "more" end.
whether or not it's worth persisting with depends on lots of factors including how much you really want this particular house, and how long you can put up with living in a place that needs work.
the roof on our place was pretty bad when we bought it. patched it up once or twice and finally got around to getting a new roof 20 years later, and guess what, yeah there were rotten timbers and some badly repaired fire damaged timbers under there which needed sorting out. now we'll probably sell and someone else will get the benefit of the next 19 years of nice new roof over their heads.
such is life.
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ChasnotRobert
From what you've said, there's no way you're getting the full cost of works knocked off by the sellers. Given building work will always cost double what you expect, and you've offered all the money you have, this seems like a simple equation unfortunately