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Check first with Council what the legal height is, then find out what rooms you can have with the height you have, like the observatory in my example. You might be allowed to legally have an office/study, a living area, a storage facility etc. So long as you call the room the right name when...

Isn't that what I said? It has to be the legal height. Have a chat with the Council. They will let you know what you can & can't do.

While I can't answer a lot of your questions, I recall some time ago now looking at a house for sale that had an attic conversion. There was a rather large room upstairs that was obviously used as a bedroom, but I was told that it was not a bedroom. It had been approved only as an observatory...