Depending on the color your going with on the exterior, if you keep it red or another darker toned color, I'd go lighter almost honey on the floors; knotty pine? I have always wanted to redo a barn into a modern/rustic home!

Is this West Elm sofa the kind of thing you are looking for? Or even lower to the ground? http://www.westelm.com/products/4227534/?catalogId=52&bnrid=3918508&cm_ven=Google_PLA&cm_cat=furniture&cm_pla=Sofas_+_Sectionals&cm_ite=West_Elm_Baxter_Sectional_Sofa_Cotton-Rayon_Ikat_Print_Feather&adtype=placi_src=17588969&ci_sku=4227534&ci_kw=%7Bkeyword%7D

Thanks :) Yeah decided to go with tile. So sand cement is ok over existing tiles if I prep them first? Only problem is, the new pad can only be about 30mm at it's thickest (leaving up to 15mm for tiles) otherwise it'll end up being higher than the hallway floor. So I either need to make the fall shallower or not bother with the waste and make it all level. If I made it level, could I use levelling compound at that thickness or would deck mud/sand cement be the best option? Also, should I be putting in mesh for strength? (I know I should (and will) ask the local hardware what they suggest, but it's great to have suggestions from the Houzz community also)

Hi Luke, thanks for your reply. Yes, there is existing plumbing but we need to create a gradient somehow on the wood floor. Concrete floors can be ground to create the gradient but need to come up with some other solution with the wood.