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Unfortunately it is quite time critical as we might lose our builders which would be the mother of all arseaches. Our architect pulling out of this has royally fucked us.
You may be right about adjusting expectations though. We've previously considered much more limited options for improving the house, but none of them make much sense as they'd all be things we'd want to replace with a better solution at some point. So it wouldn't be doing it in stages so much as doing a fairly complete build before pulling a load of it out and rebuilding it in a decade or so.
Fair enough.
Then the question is, do you have the money or not?
If not, you've got to shift your mindset - you have your own home in a location you love. It might not be exactly how you want it to be but creating unachievable expectations will only get you down.
Either way, right now it sounds like you've hit an impasse that isn't time critical. Take the week off from thinking about it and anything at all connected, focus on yourself(ves) then come back next week with fresh eyes.