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Wow! I'd also be clearing the yard to unclutter my head. But, I'm curious about the chimney. Is that part of the old laundry? I'm guessing it will be knocked down, not needed. If you are standing at the back of the yard taking the photo, I'd still extend further into it. You can always...

What is in the little room opposite the laundry (guessing bathroom - just realised I didn't see a bathroom until now - DOH! :D). What about swap "living" for "bedroom 3". Remove laundry and little hallway and bathroom at the back. "Kitchen" becomes (smaller than current kitchen) bathroom...

Why not have all three bedrooms in a row, then the bathroom and laundry with the whole of the back knocked off and turned into a big open plan kitchen opening onto a deck (especially if you are going to extend the back anyway).