I would suggest you take out the cabinet that is to the right of the stove and use it elsewhere in the house -- perhaps in the bathroom or dining room with a hutch above it. Then, I would suggest you have someone install a lazy susan cabinet in the corner between the sink counter and the stove, meaning you would move the stove down a bit and have a small cabinet/counter top to the right of the stove. I would suggest you have the cabinets refinished in white and then paint the walls a pastel you like. If you would prefer white walls, then add white-painted crown molding and paint the ceiling a light neutral blue, such as Sherwin Williams Niagara Falls Blue. Then, I would suggest you choose a favorite accent color and use this sparingly in accessories like towels, pot holders, small vases or floral arrangements, and a valence above the triple windows. For a genuine 1940s look, you might have white ceramic square tiles with a rectangular red border installed as a back splash behind and above the stove. If you are replacing counter tops, I would suggest a light color such as white with a beige or light grey vein or striation for some sort of pattern. You might be able to find the same color and design in floor tile OR opt for a wood floor as another poster suggested.

Lighting - pendants over the servery bench should be another feature that complements your chosen kitchen surfaces. So whilst I love the copper pendants in picture 1.. They could work depending on the rest of your decor and would be a highlight in a neutral white/timber kitchen = Good! If you choose copper you would complement it with a couple of copper bench top items. These are beautiful! (I collect copper because I love it, my kitchen pendants are silver, I renovated to sell in the next 3-5 years) You will see a picture starting to form in your mind and there is nothing wrong with making a statement with your lighting. I found that when I wasn't sure I would get a very strong sense of what was right and what was wrong for a space, then common sense or passion would determine the outcome! Here are another couple that might work, look her on Houzz under lighting, search pendants, then have fun looking!Timber tones with black or white to complement your cabinets... or Statement white pendants for a bit of quirky fun! Your personality can be reflected in your lighting and accessories creating that point of difference from the predictable white on timber look. Plus don't forget the power of greenery to punctuate the theme!

Thanks for the replies! My wife suggested we talk to a local real estate agent, so i think that is a good idea... just that Im not sure how helpful they are likely to be if we arent selling yet :) As for saving for our dream house, I dont disagree, however if doing this up nicely over the next ~5 years or so while we live here nets us some extra in the eventual sale, then that of course will help us as well. Interesting thing happened today actually. I got a knock on the door and one of the older neighbours asked if he could take some lemons from the tree. I of course said yes. Anyway he was telling me he had lived in the street for 40 years. I asked him if the house had always looked like this, and he said no that ~30 years ago the old old owner did a massive renovation and pulled off the timber and put up the bricks and gutted the inside of the house. Interesting stuff!

Having been brought up in a Lockwood home I can appreciate your love of the wood. I notice you have a light green bench and that would blend nicely with some similar colours in the room. I would consider having your cupboard doors replaced or sprayed to compliment the bench or visa versa you can have your bench updated with a new finish to modernise it. Perhaps you could just price out the cost of a new bench and leave the rest of the kitchen as it is. The odd bit around the dishwasher looks weird and that might be able to be fixed by curving a new bench into a small breakfast bar type set up. If there is room I would also reposition the microwave to the right of the cook top and use the existing space for a display or a lovely pot plant.