Hi, I read this with great interest as this is the daytime routine that my 5 month old DD is following at the moment. Firstly the 4am waking is perfectly normal, they will probably chat and play for a while and then go back to sleep. Are they in their own room? if so turn your monitor down so they only wake you when they want you. If not then you will need to live with it until they are.
With regards to extending your daytime naps you need to extend those first, then they will be able to cope with extended A. If you do it the other way round you may miss their sleep window resulting in them walking themselves before they get through a full sleep cycle which will mean they are even more tired resulting in worse napping and sleeping at night. You need to avoid an over tired baby at all costs. In order to do this you need to wake them just before they are due to wake up and then get them back to sleep so they enter a second sleep cycle. With my son I used shush pat, so five minutes before he was due to wake I did shush pat for ten minutes and he went over into a second sleep cycle. I did this for about a week before I no longer needed to do it. I am going to do 'something' with DD next week when my son is back at school.
I hope this makes sense, good luck.