The fantasies of lifting building materials into the open roof using a crane (how long is it supposed to stay open?) and installing dormers and stairs are already unrealistic with the given budget. I don’t see the problem with 200 sqm of floor space. I would try, if it is statically possible, to remodel the current living area. No idea if that is realistic due to statics, wall construction. But purely on paper and based on the current layout and without knowing the wall construction and wall lengths: Bedroom 1 and 2 will each become children’s rooms. The office will become the master bedroom, and with the oddly shaped kitchen, I would have it checked whether and how it can be separated so that the part facing the living room is opened and integrated there. The part facing the current office will become a (windowless) office. It would have to be checked whether windows can be installed afterwards.