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.

Yes, measurements would help. Thank you aldrea1 for other explanation, though. That helps too. It sounds like you are going into a total gut-job! I love this! Great opportunity for your creativity. Also, it looks like you have a petite sized stove. With total remodel you can upgrade to a standard size range. Is this part of your plan? Are you going to replace any appliances? It would be good for you to keep sink and stove in original locations. It is complicated to move the stove's exhaust fan and the sink's plumbing. Not impossible, but probably $$$$$$$ and a lot of hassle…. So, I would start planning with those items--stove and sink on current walls. Wherever you put your refrigerator, it would be best to be sure side view is hidden. If refrigerator stays in current position, you could make peninsula a little smaller, so wall on the right of kitchen entrance could extend further and hide refrigerator edge----Or, move refrigerator to another location… Not too far from sink and counters, though. That would cause you inconvenience. You want a work triangle with not that many steps in-between. Do you currently have a dishwasher? Or are you planning to add one? Not much creativity in placement of a dishwasher---needs to be near water source and drain.. Are you doing the work yourselves or hiring a contractor?

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!

I would clean up first. Especially the stuff growing in the paving. Then get gardening with pot plants and start experimenting with different plants and the positions. See what you like and if you can keep it alive! Our house has the sun setting over the back fence and we've done a few inexpensive things to reduce that issue (most expensive were outdoor blinds around the verandah) but for most of the year we just don't want to be out there. It is hard work to keep the plants going in summer, there is a lot of sand due to the difficulty in keeping lawn alive and it is just bloody hot. So, that's why I'm saying clean up, start gardening small and see how you go before committing to structures that might not address the real issues you have with the yard. Just my 2 cents! :)