SOLVED!!!
So I managed of course it was simple :-))
As I said, removing the AddHandler line
AddHandler application/x-httpd-ea-php70 .php .php7 .phtml
from the .htaccess file CONTAINED IN MY ROOT FOLDER, made the website show up properly. Why then the wp-admin was still not working?? BECAUSE THERE IS ANOTHER .htaccess file INSIDE THE wp-admin FOLDER which I didn’t know about and no one who tried to help ever mentioned to me, which needed same treatment (removing the AddHandler line) to work. Now everything works fine. Hope this can help!!
Thank you
Alice