That might work.
Is front door straight into the lounge ?

I would make bed 2 into kitchen. Make dining bedroom 2. Then you can keep the hall wall and bedrooms would be grouped together. And kitchen will have a outlook onto patio.

why are you wanting to move the kitchen? and do still need/want three bedrooms and a separate dining room?

Yes where is front door? Are you happy with the external laundry? Could b2 be dining and kitchen stay roughly where it is? This would save on some costs and potentially allow the dining to be used as a quiet room too!

Just how tight is your very tight budget? A new kitchen is always expensive. Moving a kitchen to a new location will probably mean some structural work to open up walls, plus a whole lot of new plumbing, wiring, floor finishes and lighting. Don't forget that you will probably need to replaster the room where the old kitchen was, and provide a consistent floor finish across the old kitchen floor and into the expanded living room, such as a new carpet. I don't think there is any way to do this on a very tight budget. I would anticipate that you will spend between $50K and $100K depending on your selections and choices of new appliances, if you want the finished changes to look nice and seamless.

Best of luck with your budget,

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