With its irregular rooflines, distinctive architecture and unmistakable individuality, Carmel-by-the-Sea, on California’s Monterey Peninsula, has been a magnet for creatives since the early 20th century. The one-square-mile town has its own rhythm and rules (a permit is required to wear high heels, for example, thanks to its difficult-to-navigate cobblestone streets) and, unsurprisingly, its approach to town planning is inventive and playful.

‘This isn’t a place where every house needs to look the same,’ says Michael Booth of design studio Bamo, who worked on the interiors of this home for his longtime clients, a couple with grown children. ‘Carmel has a wonderful collection of cottages, many of them quite storybook in character. You’ll see Tudor references, stone houses and plenty of quirky design details.’

It was within this artistic context that this home – essentially a new build – was conceived. Originally, the property featured a small Tudor-style house and a garden guest cottage, which the owners fell in love with because of its proximity to the ocean and the convenience of being able to walk into town.

‘We spent about a month trying to save it,’ says Michael. ‘I remember walking through it and constantly ducking because the ceilings were only about seven feet high. Eventually, we had to admit that we were trying too hard to make something work that simply didn’t. What was useful about that process, however, was that by the end of it, we understood exactly what was charming about the old cottage and what we wanted to carry forward.’

The result, designed by architect John Malick, is a storybook home that blends English country traditions – inspired by the couple’s fondness for the Cotswolds – with the character of California’s Central Coast. Grounded in a rich material palette that includes reclaimed oak beams, English stone roofing, straw-infused plaster walls and handcrafted windows and doors, the house quickly developed a sense of permanence and history. But this is no imitation of an old home – rather, it brings together a series of references to create something entirely new.

‘The Cotswolds gave us a vocabulary, but Carmel determined how we used it,’ says Michael. ‘We avoided literal references in favor of something more atmospheric and interpretive.’

Inside, the interiors achieve a layered feel through antiques, custom furnishings and artisanal textiles. A custom de Gournay wallcovering in the living room takes inspiration from the redwood groves of nearby Big Sur, while a 17th-century Dutch cabinet that serves as a bar offers an unexpected moment of discovery. In addition, enveloping chinoiserie wallpaper in the primary bathroom and an abundance of handcrafted wood finishes create an inviting sense of relaxed, lived-in comfort.

Every room offers details for the eye to discover, from stained-glass windows and framed wallpaper-covered portholes to exposed beams and views of the surrounding garden, where a pathway lined with Monterey cypress trees leads to a welcoming guesthouse.

Above all, comfort was key. ‘The owners entertain frequently; their children visit, and friends come to stay, especially at Christmas,’ says Michael. ‘It’s a relatively small house, so every space had to earn its keep. The living room was essential. It needed to be generous enough to accommodate the life of the house while everything around it remained quite intimate. Once we got that relationship right, the floor plan made sense.’

For that reason, the couple opted against a separate dining room, instead incorporating a dining area into the main living room to allow for greater flexibility. The kitchen was approached in much the same way.

‘We didn’t cover the walls with upper cabinets,’ says Michael. ‘Storage, the range hood and even the entrance to the mudroom are concealed, so it reads as a room rather than a purely utilitarian space.’

What the owners treasure most, however, is the way the town allows them to escape the usual American Christmas routine. ‘So much of the holiday season can get lost in consumerism – getting in the car, driving to a shopping mall, sitting in traffic, circling for a parking space,’ reflects Michael. ‘In Carmel, you simply walk into town. You wander into the little shops, admire the lights and chat with people you know. Much like this home, it really is one of a kind.’

Love beautiful design ideas, expert advice, and inspiring decor trends? Sign up for our newsletter and get the latest features delivered straight to your inbox.