Wow, If you have the time and space that will be a great project. Good luck with it. Post photos
Resist the temptation to put a single phase motor on that. Instant reverse is something three phase motors do quite well.
I suspect that it has a static phase converter on it. That doesn't work well for quick reversing, but the motor decisions will come in the future.
You're a very lucky guy to have a lathe of that size to start with. Likely your Aunt called it a small lathe because that's how your Uncle referred to it. In the world of metal lathes, it is small. Do a little internet searching for small metal lathes for sale that would go into a home workshop. That should be a learning experience as to value of what you will be restoring for yourself.
I was wondering how that was going to go. Often the chuck is on so tight that damage occurs before the chuck gives.Removing the chuck was a chore...