Three bedrooms will always be worth more than 2. If there is enough headroom I would take loft stairs up above the main staircase - from the cupboard position. Leave a landing and corridor to the bathroom and partition off a tiny bedroom/nursery/study. A lot depends on which way your roof is pitched. I would get a few loft companies in to tell you what is possible within a limited budget. If and when you get the money it might be possible to close the existing back door and refigure the kitchen units to allow a lobby and door opening out toilet and use the toilet door as your back door. A downstairs toilet is heaven sent when you have children!

The rules may have changed but when we built our extension the wall adjoining our neighbour had to be completely within our own boundary. It looks as if your neighbour has continued along the party wall and therefore half the depth of the wall is on your land. It might be worth getting a chartered building surveyor to check it out as otherwise it may cause difficulties when either you or your neighbour come to sell. If I'm wrong about this maybe a professional on here could correct me. Other than that I think you should make the best of the little private courtyard it has afforded you by using plants in pots and climbers to soften the wall.

I like the idea with the pink highlighted edge. This opens u the kitchen dining space but keeps the lounge and study separate as you wanted. I would add bifold doors if possible along the back wall of the dining room to make it feel even bigger. Hope this helps

Planning a Fitted Kitchens Step 1: Getting Started Designing the most important room in your home requires careful planning. So, before you do anything else there are some key questions to ask yourself. As you do so keep a record of your ideas so you can refer back to them as your project progresses. Step 2: How and when you want to use the space What do you like and not like about your existing kitchen. What really works for you in the current kitchen layout and what frustrates you? The negatives are just as important as the positives as they can help you form a clear idea of what you do or don’t need in your new fitted kitchen. Step 3: Key areas of the kitchen There are four vital zones that will create a natural and efficient flow to your kitchen design; cooking, food preparation, sink and storage. However, increasingly kitchens are used for all types of activity. Do you need a room that can cope with the rigours of a busy family? Are you going to dine in your kitchen? If so, plan enough room for a dining table, breakfast bar or island is a great place to congregate. You may be a keen cook and if your cooking for a large family a range cooker may figure in your plans along with plenty of worktop space. You may want to turn your kitchen into a open-plan design in which case a area to relax, and room for a sofa and TV may be important. Ultimately, it’s your kitchen, and the most important thing is how you and your family are going to use the space. Design the space and features (must have items) around the activities that will take place in your kitchen, and most of all ensure you match your kitchen to your lifestyle. Step 4: Finer details As you become clear on the demands you will be placing on your new kitchen make a wish-list of your preferred products and materials. From a practical perspective consider what you will require from you appliances, worktops, storage solutions and sink and tap. You may already have a look in mind of the kitchen in terms of colour, style and finish, but it’s a great idea to gather ideas from magazines or websites. Enjoy creating a scrap-book with cuttings of furniture, flooring, taps, even paint finishes, crockery or vases- anything that inspires you. Even just images with right ‘feel’. Step 5: Budget With a kitchen the cost of key elements such as appliances, units and worktops can vary dramatically. For instance, appliances may account for a considerable percentage of the total cost of the kitchen, however if branded top-end ovens, hobs and extractors are specified this percentage can escalate dramatically to become the most expensive element of the project. Similarly the choice of worktop materials and door materials may increase the budget substantially. There may be areas of the project where you may have to be prepared to consider a compromise to stay within your budget. Step 6: Layout As a rule of thumb this will be dictated by the existing dimensions of you room, or you may be lucky enough to be planning to extend. If you are extending you may wish to consider an open-plan kitchen to seamlessly link through to the living area. Whatever the shape there are clever design options that will ensure you can make the most of the space available to you. Even in a tight space a clever designer can still work miracles.