WWYD small extension or move

[Mumoftwo12345]

I apologise if this is long and rambly!

We live in a small end terrace, we have 2.5 beds. I say .5 because my daughters share a room and there's another small room off their bedroom we use as a playroom. We have used it as a bedroom in the past (put up a stud wall to make a small corridor) but it made the other bedroom very small and claustrophobic. Plus the playroom at the moment has a flat roof and is very cold in the winter.
We can't extend sideways as there is a semi detached house right next to us.

I feel we are already outgrowing the house as it is, the girls will eventually need their own space and I have no storage options at all.
The house needs renovating desperately, not just aesthetics, I mean ceilings and walls needs moving as it's just a mismatch of levels that just aren't working. My partner has to duck to have a shower in the bathroom (which is downstairs) the ceiling is so low!
Large chimney breasts in bedrooms leave very little space for storage etc and the kitchen and bathroom are just gross!

I know it would be so much easier to move but we can't afford the area we live in & I don't want to move out of town.
The location of this house is ideal. I can walk everywhere I need to and family are on my doorstep. I love the house despite everything that's wrong with it, but I dislike the fact that we can't do anything to it as it's not worth perking up unless we fix the structural things first. We also have damp. A builder has told us he can sort it though.

We've had an architect come and look at what our options are and he's confident we can have a small extension to make the bedrooms more workable upstairs, but they will still be small. The bathroom will remain downstairs and obviously everything else about the house has to remain as it is. I.E small.

I don't know if we're mad considering a £30k extension just to give us two puny bedrooms but I can see our only other option is to wait it out another few years to see what we can afford. I just hate living in a scuzzy house when I know it could be a beautiful (albeit small) little nest.

I'm not sure the extension we do will add much value to the house either.

WWYD? Do you think we'd regret spending a lot on a house that's still going to be weeny. Or do you reckon small can be beautiful?

[GolightlyMrsGolightly]

How much longer will it work for as the kids grow up and want more space and stuff?

I’d save your money and move. It doesn’t sound like your forever home, or even your for much longer h9me...