I would suggest that even more important than the studio is having a sound engineer/producer who understands the music and used to working with your instruments, and knows what sound they should make.

Wnen Albireo made our CD Nothern Cross we went to Jon Loomes, then in Doncaster, who is both a very good engineer and very good folk musician who plays pretty much anything. He's now in Ripponden, although I think the studio might now be at the Music Room in Cleckheaton