£40k should be enough if you budget carefully. I'd be tempted to put washer with dryer stacked on top In downstairs WC. Make kitchen a kitchen/diner if open plan works for you and have French doors and do away with back door thereby making downstairs WC bigger as you wouldn't need kitchen door from hall as access through diner.
Upstairs I'd see if you could make WC ensuite/wet room incorporated into bedroom.
That's how I'd like it, garden looks fab but high maintenance.
If you need to watch what you spend start with the big stuff, electrics, roof, Windows etc as you could put cheap flooring down and emulsion walls and once kitchen and bathroom done you could then do a room at a time when Cash available
Good luck