Thanks.... unfortunately don't have any photographs as we are moving in on Friday. The living area is 19' x 16' and it already has a 3 seater and a chaise. I might move it to one end of the living area and slot another set towards the other end. The second living area has a pool table..... this is why I cant use that space.

What a lovely room you have. My first thought is to establish where your traffic area is. Each room has a natural traffic flow and you will find it frustrating if you have to divert around furniture. Breaking the room up into zones, i.e. tv watching, play space, dining area etc will make the room feel larger and you will use the space more efficiently. When it comes to tv placement, consider where the light comes in. You will want the screen placed where the light from windows won't fall on it, or where you can close a curtain. Also, whether you want to see the tv from the kitchen, or see the view the same time as watching tv. Consider if you want the space to be a conversation area, where the tv doesn't dominate, or be a dedicated tv watching space. There is a lot to think about and decisions will be based on your family's lifestyle. As for furniture, Ikea have some great items suitable for children and toy storage that are reasonably priced. For the lounge, choose the best you can afford, for the sake of comfort. Try getting one with washable slip covers. The same goes for the rug. A good quality wool rug will last a long time, comes up well with cleaning and can even be redyed at a later stage.

All looks good except I would like to see the opening between the family and dining opened all the way wall to wall and either move the Fridge or Pantry to the other side of the kitchen. This will make the space look more open and feel bigger and allows for the dining table to be extended by just rotating cheers

Option 3 also looks the best to me (seems to be the general fave!). Agreeing with the idea of an L shaped sofa that can seat more people, as an option you can also get a bed (fold out sofabed) fitted inside, if you think you will need an extra bed on occasion. For a bunch of living room furniture layout ideas, I've actually created a free PDF with loads of options/images and a kit to cut & paste your own ideas too. https://mailchi.mp/9c071e61583e/awkwardhome-furnitureplan Hope that helps! Best of luck, it is a fabulous large space!