A double-gate field effect transistor (DGFET) structure and method of forming such a structure in which the parasitic capacitance under the source/drain regions is substantially reduced are provided. Two new means to reduce the parasitic capacitance under the source/drain regions are provided. Firstly, the silicon area outside the gate is converted to oxide while protecting a silicon ledge adjacent to the gate with a first spacer. The oxidation can be facilitated using a self-aligned oxygen implant, or implant of some other species. Secondly, the first spacer is removed, replaced with a second spacer, and a new silicon source/drain area is grown by employing lateral selective epi overgrowth and using the now exposed silicon ledge as a seed, over the self-aligned oxide isolation region. This achieves a low-capacitance to the back-plane, while retaining control of the threshold voltages.