I stayed for 3 weeks in Lungern back in 1996 but with the company Idyll Untours (www.untours.com)
They have a rather big list of landlords for this tiny town and now rent for 1 or 2 weeks at a time, however their "package" includes othe on-ground support services, so you may not want that.

For a D-I-Y option, try the town's website at www.lungern-tourismus.ch/
only available in german however.
'Unterkuenfte' is lodging, and 'Ferienwohnungen' is vacation apartments. You can book online, by entering the dates that you want the apt for, and it will bring up a list of whats available. Then, generally, you can scroll through the choices and bring up pictures of each.
Or, alternately, you cna try booking through their TI--they will usually answer questions in english.
Just be aware that the train station is at the TOP of the town, with buildings flowing DOWN toward the lake.

Have you tried googling something like < lungern self catering holiday apartment flat condo >?
Here's one, an apartment within a house, that came up:
http://www.homelidays.co.uk/lungern/apartment-flat-309770en1.htm

Perhaps Lungern Tourism could help you.
http://www.lungern-tourismus.ch/

And finally,
under B&B options at www.bnb.ch
you can find the 'Dietrich' home at 40-50CHF/night, but seems just a bed and BR or the Ming farmhouse on Bruenigstrasse (listed as organic) with a fridge and access to cooking facilities.
Good luck!

We used Untours for Switzerland four years ago, stayed in Kandersteg, and loved it but it was quite a bit out of the way. We had had a great meal at the Bahnhoff restaurant in Lungern.

We were scheduled with Untours for the Netherlands in '08 but days before departure a health emergency forced us to cancel. We did go in "09 but I found an apartment on my own and am willing to do it again. I'll look into some of the other nearby villages.

I don't want a B&B as there would be three of us needing two bedrooms and space to roam.

I do thank you for your suggestions though.

Please DO consider either Brienz on the lake or Meiringen (a larger town on the flats just below the mountains and clse to the Aareschlucht gorge).Both have conveniet rail connections.
I have stayed at both with terrific experiences.
Other alternatives are the town of Rapperswil at the southern end of Lake Zurich (just 25 minutes by train into Zuerich) or Zug on the Zugersee.
Check each town's site for a list of Ferienwohnungen (Vacation flats). I have been doing this for over 12 years since I outgrew Untours. We stayed in the Engadine village of Pontresina last year as well.
Germany is a chaper option...recommend Bacharach or Gengenbach highly. Do some more reading about which area most tickles your fancy, then GO!

Thankyou mokka4. I would have replied earlier but I took a bad fall on the 17th and this is the first time sincthen that I'm feeling comfortable enough to sit at the computer.

i had forgoten about Lake Meiringen but remembered Wengen and Lauterbrennan. I'll look into your other suggestions

ron:
sorry to hear about your fall-recover quickly.
Remember that Meiringen is NOT near any lake, but rather the Aare rushes through like a rather large brook on the edge of town (visible from the train), on its way to the dramatic Aareschlucht gorge.
I personally LOVE Brienz, with its wooden chalets climbing steeply up the hillside. The Rothornbahn steam train up to the local summit, the lake cruises and the outdoor museum Freilichtmuseum Ballenberg are all town draws, and it is only 15 minutes to Interlaken Ost for those mountain jaunts and easy rail connections.

Two great sites when you're up to 'chair-surfing' for apartments (once you've settled on a town) are
http://chalet.myswitzerland.com/holiday-rentals/Brienz.aspx
or
http://www.haslital.ch/en/page.cfm/Haslital
Search 'Accomodations' (at the top) then 'Holiday Apartments', then choose your region/town or district (this site includes a nice chunk of the BO).
Each apartment has a few photos are info regarding # of bedrooms, etc
Happy eye-candy!

Thankyou all for your replies. I was not able to make the trip this year due the leg injury. I am just starting to look into going next year so your input is appreciated.

mokka4:

I checked all over the country and narrowed the choice down to apartments in Engelberg, Aisch, Wilderswil, and Brienz.
The final selection was Brienz where I found an apartment under My Switzerland.

The main factors being the nearness to the train station, three bedrooms, and two baths with showers.
Everything else about the apartment was also very nice. Thanks again for your suggestion.

ron k

When will you take your trip?
You can't go wrong with either Brienz or Engelberg--love them both! Happy travel/planning!

Most likely the last two weeks of May, 2013