I think it would be really cool to restore that wood burning area in the kitchen. It would be kind of special to be able to use that area to cook in that area as it was originally done.
I wonder if that existing outside stairway could be glass enclosed, then lead down to the cantina that could be an en-suite bedroom with glass doors. Also, that roof space above the lounge could possibly be accessed from the stairs with potential for another bathroom there.
This home is fantastic. This is the perfect home for someone wanting to rebuild. It's basically all there except for a new kitchen, upstairs bathroom, ceiling work, exposing the brick on the ceiling and sealing it up, painting the walls, refinishing the outside somehow, and a hard scrubbing. This home is not a bad deal at all. The price is right and the repair work would cost about €20,000. However, you can do the repairs as you go along.
The price is great! I would make the cantina the kitchen/dining room. Modernized the bathroom with the stairs inside like you suggested. The old kitchen would become a 2nd bedroom with a Murphy bed/ office. Add a window there for more natural light. Very doable.