We've been in our current house for over ten years now. It's a small 3 bed Victorian terrace - was about 750 sq ft when we bought it; we did a kitchen extension a few years ago which means we might now be approaching 800 sq ft (I haven't checked) but it's still not big!
There's a lot to love about our house - it's cosy and easy and (relatively) cheap to heat; lovely period features (we even have a blue plaque outside); takes no time to clean, and it's in a very central location. Town centre, schools and train station (DH commutes into London 2-3 times a week, me less frequently) are all within walking distance, but so are lovely parks and countryside for walks etc.
Best of all, it's affordable. We over pay the mortgage every month, and pay off a big chuck every year when DH gets his annual bonus. If things continue as they are, we could be mortgage free in ten years or less, by which time I'll be mid-50s, DH late 50s, and the DC 21 and 18/19.
However, there are major downsides. The DC (DD and DS) have their own rooms, but they're small - 10ft by 6ft for DD, 8ft by 6ft for DS (approximately). DS's room in particular is an awkward layout, making it hard to maximise space. They're not really suitable for teenage hangouts or sleepovers.
DH and I lack bedroom storage space, and there's no office space for DH, who works from home 2-3 days a week. He's either in our bedroom or the kitchen, neither of which is ideal.
The front door opens straight on to the living room, so in the winter we're constantly hoovering up the muck that gets in no matter how careful we are. We have only on street parking, although to be honest we're used to that and it isn't a major problem as we're able to walk to most places.
To get a substantially bigger house we'd need to move to the suburbs, which we're definitely not prepared to do. It would make everyone's life harder and unhappier. If we stay in this area, we could get something a bit bigger - maybe a home office, or slightly bigger bedrooms, or a second bathroom, or a drive, but not all or even most of those things.
Our loft is small, but we could possibly extend up into it. We do use it for storage though, so god knows what we'd do with the stuff we keep up there - no garage, and no room in the (tiny) garden for a shed. To do a full dormer extension we'd probably have to lose DS's bedroom for the stairs, so it wouldn't gain us much extra space. A semi-conversion, in which we'd put in velux windows, heating and power, and one of those pull-down staircases, so it could be used as an office/teen hangout space, might be more practical, and we could keep some storage space up there. But we'd need to extend our mortgage to do so, which means paying it off for longer.
My current thinking is that if we just put up with what we have and concentrate on paying off the mortgage, we'll be in a position to help the DC more when they leave home. Yes, our current home will not be one they'll be keen to come back to as adults (you can just about fit a double bed in DD's room, but I don't think you could in DS's), but if we're mortgage-free by the time DD graduates, we'd be better placed to help her get on the property ladder, and then DS later as well, and wouldn't that be better than having to go back to live with mum and dad anyway?
In the meantime home working is tricky for DH, but he does have the option to go into the office more. And yes, there's not much space for teen hangouts, but my memory of my own teen years is that we all crammed into my tiny bedroom, or that of another friend's, because we lived centrally and we could use it as a base to meet up or go out from. No one wanted to hang out in more rural friends' much bigger houses! Plus DD is autistic and very introverted, so may not even want to have friends round - and isn't that another argument for putting ourselves in a position to help her buy a little flat of her own, rather than condemning her to flat shares that would make her miserable?
Once the DC have left home, this house would be a perfectly decent size for DH and I. And actually, I do love it. I didn't at first - it was only meant to be a starter home - but I do now, and I'd be sad to leave it. If we could afford a dream house in a dream location, maybe I wouldn't mind leaving it, but we can't.
Well congratulations if you got through that long ramble!! I'd love to know what you think - I'm very much leaning towards concentrating on paying off the mortgage above all else, but I'm open to other POVs. Who knows, there may be some other brilliant solution I've overlooked.