Hello, I have a house from 1968 with the classic recreation room and a sauna with a shower built on top of the wooden floor in the recreation room. No fireplace, unfortunately. I think it smells, not mold but like a summer cabin/basement/damp. Some days the bad smell seeps up to the living floor because the staircase is open. The rest of the basement has concrete walls and concrete floors and it doesn't smell bad there. No elevated moisture has been found by two independent inspectors. The house is situated on a gravel ridge and a radon extractor is installed.
I want to make the recreation room usable as a hobby room.

My plan right now is: Remove the sauna and shower. Close off the drain and water (there's potential to build another bathroom on the other side of the wall). Remove the old interior walls and the ugly paneling. Remove the wooden floor and wooden joists directly against the concrete. The insulation seems to be sawdust in the floor and some kind of mineral wool in the walls.
The insurance company's building advisor suggested new walls with metal studs and insulation from the top down to about half a meter below the ground surface. Ventilated floor "mechanical underpressure ventilation" e.g., Nivell or Granab.
I haven't decided on the floor surface yet. I like the wood appearance which leans toward parquet. Vinyl flooring with a wood look is soft to walk on and might give a warmer feel? Even warmer and softer feel would be provided by a wall-to-wall carpet, but it's not smart to have in a sewing and hobby room.
Ideas, comments, and suggestions are welcome! Also, how can I save money and build cheaper? I need craftsmen for everything except painting and wallpapering.
 
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Martor003
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