Is an extension necessary if it's just for "nice to have" space?

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We recently moved into our house and we are family of 4, 2 kids aged 6 and 8 and me and DH. The house has 2 nice sized reception rooms and a breakfast kitchen, i.e a kitchen that can seat 4 comfortably, maybe a 5th person at a push.
We are not finding we need any extra space, and we don't even use the front reception room during the day much. Bedrooms are also pretty big. But we don't spend any time upstairs during the day and downstairs is big enough.

BUT, I would love a kitchen diner that can have a bigger table for when we have guests. A utility space too. Ideally.
I'd like to do a small extension of about 10sqm to achieve this, but I know it'll cost over £20,000, also kitchen costs.
Will it be worth it? DH says no.
I'd hard to justify it when we don't really need to extra space day to day. But we do have visitors who stay over on average about once a month, and we might host guests for dinner, have people around during the day for lunch etc, about 3-4 times a month.
We wouldn't have to re mortgage or borrow money, but would wipe out most of our savings.

We could rejig the kitchen (the layout is not good atm), put washer dryer in garage etc and squeeze in a bigger table. But would I regret paying for a new kitchen without getting anymore space?
WWYD??

Did think of knocking through to the back reception reception room from the kitchen, but DH not keen on that and we'd lose wall space. As the kids are getting older, we are realising we need different spaces for different activities.

You will find you use the space you have differently as the kids get older. Most teenagers retreat to their bedrooms to have privacy and often end up with tvs, laptops and other gadgets in their rooms. You might like to give them a 'den' with all that in so they can have their friends round and eat in there rather than doing it all in their bedrooms? It is the trend these days to have a large eat-in kitchen/family area with doors out on to the garden and i love this - unfortunately we dont have the money to extend our current house. If you can afford to do it i would as i think you will love that extra living space as the kids get bigger - they take up so much more room when they are gangly teenagers! However i think you might need around £50k to do it properly.

However i think you might need around £50k to do it properly.
hmm, that's my worry, that the costs will escalate. We are in the NW though, building costs are lower than in the south. If it costs 50K it won't be worth it, as house price won't reflect the spend either.
We do have 2 separate reception rooms as well as a breakfast kitchen, so if kids wanted to have friends around and watch TV they can do so in the front room, and there are 2 other rooms for using.

Personally I wouldn't spend money on an extension unless strictly necessary.

How big is your kitchen-diner? With good planning you might be able to use the space better.

"You recently moved into your house" - would it have been better to have found a property that suited your needs ?

Suggestions

In summer sit outside

You could build a shed or den in garden for the children when they have friends to visit

Instead of spending the money on an extension, spend the money on something else eg holidays, savings, something that the family will enjoy

"You recently moved into your house" - would it have been better to have found a property that suited your needs ?
There were bigger compromises to be made on the other houses that we looked at. This house has everything we need in a location we like, but a slightly bigger kitchen diner would have been nice to have but wasn't a deal breaker.

Kitchen is currently 20ft by 7.5ft, so long and narrowish.

It really depends on whether you want to stay there or not regarding whether it's worth it. If you really find it doesn't work and you need a different set up then you have to find the money because it may be more expensive to move to somewhere that's perfect. Lots of houses are a compromise. Personally I preferred having a kitchen with decent space and only have one reception room. I don't like teenagers shutting themselves away and we tried to keep the family together by having space for all of us in the very large kitchen and made it the hub of the house. They could watch tv in the lounge. They didn't need another room and you don't need two dining tables. So, can one reception be amalgamated with the kitchen?

It is also relatively expensive to build tiny extensions, and more cost effective to build the permitted development size. If you want to enjoy your house for a number of years I would but the billet or you just keep on being disappointed!

When you come to redo the kitchen I would think about units, cooker, sink all one one side. Then a table against the other side.

Sort of like this.