I like it! It has charm, and feels like a proper home rather than a bland plastic box.
Ideas to make it work for you...
Convert one of the two upstairs bathroom or shower room into a bedroom. Doing so shouldn’t be too costly, will add value.
Downstairs- ideally convert the long, narrow living room into a kitchen/family room. U-shaped kitchen on the street-facing wall, then table, then sofa at the south-facing garden end. This gives you a dual aspect, good-sized, good shaped family room.
The current kitchen becomes a large entryway/utility/pantry/etc, but with everything contained within full height cupboards. This gives you a really practical area that makes life very easy to live in.
Utility becomes downstairs loo, if you think you need it. Otherwise office/music/x-box, whatever.
Current dining room is a living room (from pictures it already is!).
Sun room is play room/day room.
Bedroom 3 stays as us, but as a guest room (or office).
The location sounds great-in effect a cul-de-sac. Loads of village houses are straight onto the pavement but this is a properly quiet one.
You have parking with garage, road, etc.
Personally I don’t understand why anyone would choose the other two houses suggested upthread as an alternative!