Thanks Carole, yes we are very keen to knock out that wall - I have to be restrained from bringing the sledgehammer inside until we get a proper load-bearing beam organised! Once thats done and the books are off the floor and on the wall opposite we will have to think of rearranging this space - I still like it split up by a couch, but perhaps we could put a larger dining table in the new space.

Hi Tammy first time user had trouble loading photos have since posted a couple

Well, for lack of a better idea, since you find it a drafty little space. I'm assuming the draft comes in on the right? Most of the necessities in the area are located of the left side; i.e. vent, thermostat, light switch etc. What I would do I think is caulk up the drafty spots, maybe even add sized poster board wrapped in batting I covered in a gorgeous fuscia with diagonal grosgrain ribbons every which way covered with a heavy velvet to be attached to the area above & below the window. (Of course remove the drapes that are hanging in there). This for the purpose of using it as a pin-it board for notes. Attach a table height board covered in felt to carry across the full width of the little room. Leaving just enough space for a comfortable little antique desk chair. Paint the back wall a bright cobalt blue, paint the ceiling a silvery pearlescent white. Find a way to attach a clip-on task lamp. And stretch a heavy duty enough wire across the top of the opening and complete it with a heavy doubled velvet drape with a drooping valance. Place a swag with fringe & jewels on it to be closed when not in use. Voila intrigue is yours!

Your lounge looks like it receives a lot of sun so you might like navy, turquoise, or emerald green for the room. Whatever color you pick, leave the valances (?) above the windows close to the color of your air conditioner, so it won't be too obvious. Use lamps and update the ceiling fixtures. Bamboo blinds might look fun on the windows. Look to the kitchen floor for paint colors in there. It appears the range hood is way too high to be effective. Is that just the perspective?