Could it be that it has to align with the neighboring house at certain points? The current old building and also the neighbor have an outstanding basement, one upper floor, and above that a small attic with a loft, totaling around 45sqm of living space. The new building, on the other hand, is supposed to have only a ground floor and one upper floor.
Of course it has to align with the other semi-detached house; after all, the house must connect with roof pitch, ridge height, and eaves height where it is currently connected. I have the feeling as if you have never been on this street, or maybe have only driven to the house you bought once or twice. There are dozens of houses standing there, all of the same origin, in a row. Most have already been renovated. But the path a renovation (or new build) has to take is quite clear. If I had bought this house on the 1027sqm plot, then I would have made inquiries at all the houses beforehand on a Sunday and interviewed the residents :P I personally am currently fascinated by the history of the houses. Not that I have nothing else to do, but some things are so interesting that one gladly spends time on them.