D.P.
Why not ask the parents if they would be interested in selling the office, since your trailer is getting cramped? BUY IT. Then it's YOURS.
I would not spend 10K to add on to a 40 yo trailer. And would it even be yours to sell someday since your in-laws own it (technically).
I feel these are bad ideas for family involvement (even if it is a good relationship--now):
1. Assuming that because you need more space, they need to accommodate you & your family-it is, after all their house, and they may want to stay just the way they are--home and office and your family in the trailer. They are already providing rent/payment free living. Don't look for more.
2. Don't put all of your eggs in the same basket. Will you want to stay there forever? Do you want to move off of the property eventually? Do you plan to wait until they are too old or infirmed then inherit all of the property?
If it was me, personally, I would sit tight, deal with the room issue (no 3rd bedroom--no negotiation) and keep socking away money to add to the down payment on your future home (new or pre-owned) so your mortgage is as small as possible, or nonexistent.