Advise on whether to sell home in positive equity ?

Hi all,
I am looking for some advise on whether to sell our house or not.First of all I am 37 years of age..
Our story is that I bought a house in 1999, I took out a mortgage on it which now stands at 90k. Having got the house valued earlier this month I was happy to hear that it was valued at 220k.
I am married now and we will be starting a family very soon. In the long run the house would not be big enough for us as a family. I am working full time (Restaurant) and my wife part time and with our mortgage at 700 pm, personal loan of 300pm, credit card etc ... we are about breaking even.
My question is would it be a good idea to sell the house, pay off the debts and costs and come out the far side with 100k in our pocket. In our area of Munster renting nice houses work out about 500pm and they are plenty of them.
Lont term plan would be to rent, save up and buy again in a few years. We would be debt free, have a healthy bank account and the choice of some great properties at reasonable prices.
Am I living in a dream world ?
Please set me straight.....
Pablo74

I think you've answered your own question...

Do it soon though while you still can....