Have you tried the sofa against the wall and the chair in the sofa’s position? You indicated the windows have a view to a lake but the positioning doesn’t look to take advantage of that. If you are changing furniture, you might want to consider a lounge suite with more leg length to help create a lighter feeling.

How many are in your household, and who will actually spend time here doing what and at what time of day?

Is this a reading and relaxing in the evening adult space? A drink coffee in the morning place?

You seem to have two focal points, the lake and the fireplace. If you are mostly in here in the evening and can't see the lake then the fireplace is the focal point.

Do you need to have a sofa or are two comfy chairs with ottoman's more of the right vibe? How many do you intend to seat?

Because the space is small, I'd get furniture with slender lines, but not so slend as to look too modern since your new fireplace is homey and country feeling.

Thank you! We are planning on purchasing new furniture. I like the idea of two comfy chairs with ottomans. I’ll also look into a lounge suite.

There are two in the house but we entertain a lot. We have another living room where we spend a lot of time, too.

What color furniture? And I’m looking at getting a neutral area rug as well.

How do you suggest decorating over the mantel and on the walls next to the fireplace?

I Think I would go with 4 comfortable chairs that swivel.

Look for ones that aren't oversized.

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Love this idea. Thank you!