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What is this called?

last year

Hi everyone, I was just hoping to understand a bit more about the design shown in the photos:

  1. What is it called when the side of the house (part way down) is indented in a u shape as shown in the photos?

  2. What is the purpose of this / why do people do this?

  3. If it is to allow more light to come in, how big would the space need to be to lighten up the rooms either side of it if it’s on the south facing border of the house?

  4. I appreciate this design choice would add to the cost of a new build (custom knock down rebuild which would otherwise be in a simple rectangle shape). However, does anyone have a sense on whether the additional cost would be in the realm of a few thousand dollars or much more significant than that?

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