What can I do with this terrace layout?

[TiddleTaddleTat]

I've had some useful feedback from this board and decided to buy a small terrace mortgage free rather than stretching ourselves and getting a large mortgage for a semi. Unfortunately in my area it's either £210k for a 3 bed terrace or £300k for a doer-upper 2/3 bed semi, with nothing in between.

This is the layout of one terrace I've seen in a particularly good location. In addition to the offshot kitchen there is a small outhouse (complete with original plumbing). I'm wondering about how I could remodel this space to create a utility area, downstairs toilet and/or coats and shoes space.

The dining area is apt 12x12ft and the kitchen is 8 x 7ft.

Budget is £30k for the whole project (which needs to include replastering throughout and probably new windows).

Any ideas or links to similar projects?

Just seen update...for me it depends on how long you want to stay in the house ...we will probably only just make the money back but means we can live here for long-term ... it's transformed the house

@averythinline It sounds like the work you've done was worthwhile in making it the house you want. If we made the downstairs work, I'd expect we'd stay there for a long time.

Insulate and extend current outhouse to incorporate new utility room/toilet/mudroom as the plumbing is already there - I wouldn't knock through kitchen and dining room into one big room as they can end up a bit attic-like unless done professionally which then sends your budget through the roof. Access the new room from the back of the kitchen, move sink under the window, close up current kitchen external door and this gives you more wall for kitchen storage and cupboards etc. Access to outside could then be through a door in the new extension and possibly patio doors from the dining room where the window currently is, if space allows.