cheaper project, spacious new build on cul-de-sac or expensive dream house, which 1 would you go for???

[RanToTheHills]

3 possible options to buy and mulling them all.
Option 1(if you're still with me) - a v small project needs complete overhaul and extension but in great location
Option 2 - sensible one, "executive"-type home not my ideal house but beatifully done and will be finished and moveable into very soon.On a cul de sac in a not as good location
Option 3 - dream house, huge, wonderful location,needs nothing to do to it but would mean mortgaging to hte hilt and selling off
family silver/pets/kids whatever!! Would probably need to borrow on top of mortgage in order to secure it.

So oh great MN jury,which option would you go for and why (if you're still with me that is!)

just an update. Been crunching some more numbers, turns out we could go for option 3 and because it needs no work doing on it would need to borrow less on credit cards/loan than option 3 even though it's substantially more expensive. Ie we'd take out a larger mortgage on it (85%) and could sell our btl to reduce this as soon as we can.

Oh and the problem with option 1 is that (at least initially) we've actually paid over the odds for it. Even though it needs a complete overhaul and an extension.
We did this as we got into a bidding war and because its location is perfect and future value hopefully is good.Not sure if any of this makes sense, even to me!