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Some more assumptions:

As the property is not older than 100 years and the valuer is unlikely to say that it is not immediately habitable, you won’t be forced to get a structural survey done by your lender.  This will avoid the need for your lender to hold back some of your approved funds until certain works have been completed.  You should get a structural survey done anyway, as this will highlight any more expensive problems outside of what you can see.  Let’s assume this goes well & nothing major is noted.

We know the total cost to buy the property is €1,222,950.  You qualify for a mortgage of €963,600 (Combined gross annual incomes of about €260k required) which is 80% of the ‘value’ or purchase price of the property.  You could borrow the €963,600 over a 20 year term and use €259,350 of your €590k cash to complete the purchase and then you would have €330,650 to do the works to bring your new home up to scratch. 

€963,600 over a 20 year term at a rate of 3.80% will cost you €5,738.18 per month.

“But Brian – You said €250k is all the work would cost – Why do we need €330k?”  Well, I just used €250k as a round figure and we all know that we get carried away with ‘extras’ when they are presented to us, so it’s reasonable to work on the basis that this house will take every penny you are prepared to spend on it – new furniture, upgraded underfloor heating in the ensuite etc.  But no… you don’t HAVE to use your full €330k cash.  You could place a strict limit of €250k on the works and either keep the €80k balance or you could just borrow €80k less.  

I personally, would borrow the full €963,600 and go to town on fixing the place up using the full €330k cash. 

I would then set about reducing the mortgage debt over the next few years.  Things like the garden could be worked on over time.  You’ve no cash left now anyway, so expensive nights out, apart from being completely over rated, are now also not an option, so you’ve plenty of productive Sundays available to get your wellies on.  You’re both 50 – Your kids don’t need lifts to rugby and hockey on a Sunday morning now anyway.