Remodelling a terraced house - please critique my floorplan!

[ChocolateChoux]

Hello everyone First time poster, long time lurker! My partner and I bought & moved into a new house about 6 months ago, with a view to eventually remodelling/extending it to suit us but don't know if what we're suggesting is a good idea!

The house is a bog-standard 2 bed Victorian terrace - 2 up, 2 down with a small galley kitchen on the back and stairs in between the living and dining room. We ideally need another bedroom adding and we did initially hope to do a side-return extension to gain a bigger kitchen/dining/living space downstairs. However, our funds are limited and we therefore have decided to do a loft conversion first, while remodelling downstairs to fix the old, cold and tiny galley kitchen into something a bit more useable (and not damp!) until we can afford to do a side-return extension.

At the minute, the layout of our house looks like this
imgur.com/a/4P3hZ

But ideally, I would love to open it up like this:
imgur.com/a/n8Ow5

Can someone take a look and let me know what you think? Does this even look like a sensible idea?

If you can’t do extension now, the kitchen layout nameusername is posting is brilliant if yours is similar size.

nameusername - that is wonderful and so great to see in RL.

OP if you did put a utility room at the dead ens of the kitchen - see if you can add a downstairs loo in there as well -- pumbling should nt be an issue as it is below existing bathroom.

OP - I know I am a dog with a bone but getting back to the hall wall.....it does not have to be a "wall" you could add a thin panel / partition doesnt even have to have a door on the end and doesnt have to be the full length of the hall - just enough to direct traffic and save drafts....

I would consider swapping direction of the stairs - I have done this - it is v expensive...

I can't access your plans at work to scrible on so I had to use the ones Userposted - but basically i'd do this.

silverspot and nameusername these really seem like the best option! Thank you both, especially for the pictures and floor plan, they really help show how it’d look.

another20 I really don’t think the space i’d lose in the living room would be worth it just to add a hall, sorry! I don’t actually mind having the door in the living room - I know plenty do but it’s normal for this style of house in our area. Our front door is good so no drafts to worry about

Have you checked out building regulations for loft conversions? I don't think you'll be allowed to have stairs leading into the kitchen if you convert the loft. Maybe you'll be allowed if you fit a sprinkler/mist system but it's best to check before making firm plans. And there's no guarantee that architects/builders will be up to date either (bitter experience here!).

Have you thought about putting an island in? My sister has a townhouse that is set up like yours except the bay window with the dining table is at the front of the house. Y could you put the cupboards all along the back wall, then put an island in the middle with either the sink or the oven built into it. If you definitely needed a desk nook you could put it in the back corner where the cupboards were in your first drawing.