How would you improve this layout?

[whereiscaroline]

We've found a house we like, but needs a lot of work, including changes to the layout. We just can't work out what changes would make it workable though. How would you change this to make it functional as a family home?

The rear door on ground floor actually opens out to the street, whereas the front and side door open out into the garden.

Unless you have the skills of various trades and can do a lot of work yourselves, the work the house requires will cost much more than £40k OP.

I would disagree re: ceiling price too - I think it will cost you considerably more than you have available to sort the house out and for the reasons I stated you'd be unlikely to recoup the money you need to spend even many years down the line. Even the hard landscaping outside is dated and pretty unattractive and would cost a lot to sort out.

Upstairs split bedroom 3 into family bathroom and nursery ( if needed or more storage)
Downstairs turn half of kitchen into utility. Make kitchen diner from rest of kitchen, lean to and conservatory which leads nicely into lounge. I would do bi fold doors into garden here.
If you need the extra bedroom removed from upstairs perhaps guest bedroom where sitting room is.
Study could be turned into cosy snug.

Depending upon where structural walls are and if the cost is worthwhile at the property
I would look to
Upstairs look to moving the inner passage to the left side of room 3 to access room 1 , make the dressing room into a small ensuite to room 1 , with a corridor past it to reach family bathroom with door way moved to corner

Downstairs I would open up the kitchen into a L shaped kitchen diner by replacing the leanto and conservatory with a one story conventional build extension ( technically not actually an extension as it's already there ) I would then have a door into the kitchen from the hall , and block off the door from sitting room into study to stop it being a corridor room .

Are there any windows along the long straight wall upstairs? My concern about moving thecorridor fromright to left was that There did not appear to be any window in the right. Not necessarily a problem with a bathroom but it’s not ideal.

Interesting. Agree with Ling for upstairs as best bet.
For downstairs I would turn kitchen & study into kitchen/diner with utility at the far end leading down to the cellar. I would put the bi-folding doors at the other end where the kitchen is so that it can open out into the garden & flood light.
The lean to I would make the formal entrance and cut into the sitting room to make a larger hallway that links the ground floor from one end to the other. I will then make the sitting room into a kids play room and change the shower room into a cloakroom. The current conservatory I would make into study/office and keep the lounge as is or space for sitting room. This way you do less knocking of walls or extension and utilise the current layout to the max. How ever if you prefer the open plan look/living do as above but given the size you would have this feel as the 'living areas' are large and as long as you have lots of light it provides a more flexible space.