Teresas Loft was a very good choice. It is located in Alfama, near the Castle and Largo da Sé. And everything is very close: Tram 28 is almost passing the loft, a lot of real Portugese restaurants and beautiful sights. The Metro stops are also within walking distance (5 min to Terreiro do Paco) if you take the stairs ;) The apt. itself was very clean and neat. It has everything you need. The house has rather thin walls, so one is able to hear the neighbours. Beds are in a corridor, seperated by walls without doors, no seperate rooms.
Teresa was very helpful through email correspondence.
I would defenetively recommend the place! We had a wonderful and pleasant stay and would always come back to stay in this Apt.