Loft conversion vs Extension

I might have taken a punt if we were talking about a £1k shed in the garden, but for such a large potential investment, I would want something explicit to say all was above board before going ahead.
 
We have just started our loft conversion. Went with builders that have had good reviews, they encouraged us to speak to homeowners where they have done previous jobs, seemed like they knew what they are doing... Quoted us 47,000 + VAT initially, but this went down to 45,900ish after some negotiation. This will give us 1 double room, a decent size shower room and a single/office room with some eave storage. Plans and drawings done (included in the price), they have put the scaffolds up. Waiting for work to start. Estimated time to complete job is 6 - 10 weeks.

We were also going to do some work downstairs (move a well forward to make kitchen bigger and shrink the living/dining room. Put in bifolds and remove a chimney breast) They wanted 16.2k for this, which seems a bit too much so we are holding off agreeing on this, will see how they get on with loft before deciding if we go with them or find another firm for this job. Based in SE, border of London :( , I think this is a reason why its costing us a lot more.
 
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