In the abscence of an Interior Design/Renovations topic - is it always better to have more bedrooms even if it means having a small living room?

[Malaleche]

We are doing up a small two storey house and adding an attic floor and roof terrace.
At present the plan is to have;
ground floor: hall, kitchen/dining room, walk-in cupboard off kitchen, WC with shower and small double bedroom
1st floor; bathroom, small double bedroom, tiny kids bedroom with bunkbeds, small living room
top floor: small double bedroom, roof terrace

Question is: should we make a bigger living room by joining the tiny kids room and living room thereby having to have our bedroom on a different floor from theirs (theyll be 4.5 and 1.5 when we move)? We may not even move in but sell and get somewhere with a patio instead - in that case would it be better to keep the 3.5 bedrooms or have 3 and a bigger living room?

we went to a view a house with an upstairs living room and downstairs kitchen/ dining room. the thing we didn't like about was we thought it would disturb ds at night having the living room so close to his bedroom (which was a cupboard really) and also cos it was opposite a pub, so thought there would be noise from that. lovely garden and indoor pool though ...

i would definitely have the living room on the top floor though ...

i'd go for the 3 bedrooms btw. if the other room is only a box and the living room is small it will put people off buying. if people need 4 bedrooms full time they probably aren't going to buy a house with a tiny 4th bedroom. the only people i know who have houses with a tiny bedroom use it as a junk room! so on that theory better to go for 3 big bedrooms and a big living room.

oh hang on just realised i contradicted myself here cos if you have the living room on the top floor it isn't an issue!! then you could have 2 double bedrooms on the 1st floor eliminating any issues you have with sleeping on a different floor to the children. i personally don't think this is a problem though. loads of people have attic bedrooms these days with their kids on the floor below.

if you have the living room on the top floor could you have one double bedroom and 2 smaller bedrooms, but not so one is tiny iyswim. or 3 roughly the same size?