Also what type of cladding would anyone suggest?

Get the professional sander guys in to repair the living areas and kitchen but don't go too dark with the stain as it will kill the lovely grain in the matai. I'm thinking a couple of tones richer than the timber knots showing in your photo, definitely no yellow tone at all. In NZ stepping on to carpet especially in a kiwi winter is so much nicer than a cold floor board shock!!! A nice area rug for the lounge and you're done.

My last household purchase was new sliding doors to the outside from my dining room. This then led to the building of a deck, new railing on said deck and existing terrace, new blinds as the old window length curtains no longer did the trick, then the paving stone path to the deck from the garden gate, some new planting to accommodate that, AND outdoor lighting for what has now become an alternative entrance to the house! Oh, and painting as well. So I can liken my last purchase to a bit of a triffid - it kept growing! But SO worth it! It has added another room/space to my house, increased light and warmth, added value and created a more welcoming entrance than before. Love it!

Something like this would be great!