Desktop to Laptop Conversion/Migration

My grandfather has a desktop which is getting too old. He has an up-to-date laptop, but can't use the laptop keyboard and such because it is too small/inconvenient for his hands. Is there a convenient way to make his laptop like a desktop. By that I mean that I would want to connect his existing desktop monitor/mouse/keyboard/speakers to the laptop, so in essence, I'm only using the laptop for its processor and harddrive. I've seen full-blown docking stations, but is there a cheaper alternative? Because we'd be "hiding" the laptop, is there a way to keep the laptop active, even though the lid is closed? Thanks for your input.