You would be very surprised at how much you can do to a home with a grandfathered septic system. The only thing you can't do is increase the number of bedrooms. So you don't call them bedrooms. Call them a study, den, playroom, loft etc.
Surprisingly a grandfathered septic does not mean you can't add bathrooms, add all you want. And you can add a bunkhouse, just made sure you call it a utility building on the plans. It can have a porch and picture window overlooking the lake. it can't have a kitchen because that makes it a separate residence.
Tear down the building and start from scratch, just don't increase the number of bedrooms. One method is to eliminate an existing small bedroom and add a huge bedroom with private bath and huge closets, perfectly legal.
Be careful about closets. A playroom with closets is a bedroom in anybodies book.
This is regulated by the towns. Towns make money through takes. Increasing the size of a waterfront home increases taxes for the town while almost never increasing the number of children enrolled in local schools. If the property is on an island it will NEVER impact the number of children in local schools.
The building inspector is not looking for a way to say no. He is looking for a way to say yes. And that makes a huge difference.
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