What kind of flooring are you going to use? A lot of people add a 5/8 plywood subfloor right over top of the existing lino. If that works with your flooing and height issues it might be ok. Not the greatest subfloor for tile but ok. If you're not willing to chance the asbestos (and why would you) it's a good choice. One thing that may work if you are tiling is to install Ditra as a subfloor over top of the lino. There are mortars that will work but you must us the right products. You can also skim coat the lino with planipatch, then install Ditra for tile. It lowers your subloor height by up to 3/8 of an inch. I'd phone and ask Northland Construction in the am.
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