Hey, that's down my road! Fantastic area, but aren't prices getting a bit beyond stupid? I bought two years ago, paid £120k more than you, but got five bedrooms and a 90ft garden for that.
OK, I'm not going to argue with you about the area - it's a wonderful place to live with truly great schools. But let me ask another question: does it really have to be a house? Let me give you another option: a friend of mine who lives very, very close to there recently bought a 3 bed ground floor flat in a 60s block for just over £300k. It's got no Victorian charm, but it is lovely: big rooms, huge windows, own patio garden plus big communal gardens running down to the waterfront.
If my budget was limited I'd be going for a flat like that rather than a weeny house like the one you're considering.