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I’m just speaking from a town planning (law) perspective. Land ownership is a completely separate matter.
The Council cannot make them knock it down or make alterations to it if it’s been there (without planning permission) more than 4 years.
Any land ownership matters will be between the OP and his neighbour and ultimately for the courts to decide and cost £££. The council will not get involved.
I think that the law regarding squatters' rights has changed as I looked into claiming a two-metre strip at the bottom of my garden and which belongs to the college behind me. The colleague has no access to the strip as it has built a ten-foot high fence two metres inside its own boundary. However, not have I been tending to that strip for ten years (as it was originally overgrown with a mass of impenetrable brambles) I dug it over at the beginning of lockdown and it has now become a vegetable allotment. However, the research I did seemed to indicate that I can't simply claim it, as would have been possible twenty years ago.
Does the land registry plan show anything? You would think that area would be quite obvious pushing out a foot.
you really need legal advice, seeking the opinion of a property lawyer. your neighbour can't just build on your land, and if they have done so, i'm pretty sure you can have the building removed at their expense.
however, this could prove costly so its best to get the legal position sorted, and then ask your neighbours if they want to buy the land from you rather than have it knocked down.
That won't make any difference. No enforcement action can be taken by the local planning authority as the extension has been in place for longer than the prescribed period under the Town and Country Planning Acts. Sadly there is nothing much the OP can do. However, I'm sure the fact the extension overhangs does not have implications for the boundary which will remain unchanged. If problems with the neighbour persist the OP could try the University of South Wales which runs a free legal advice service and there could well be other free providers of advice elsewhere. Might be worth researching.
I reckon the neighbours have cocked up here as well (being kind to them), but it's not beyond the realms of possibility that they did this illegally. Is there anywhere where past planning applications can be viewed?
They may be getting upset about the legal avenue because it costs money, or because they know they're on a loser, or because it may highlight other work.
Very interesting, but not very pleasant, never nice falling out with neighbours. I fell out with neighbours previously because they kept blocking a driveway.
I would have thought deeds would be held somewhere and, yes, get it sorted asap. As soon as someone moves in it will no longer be their responsibility so it gets trickier. Also, this could result in your house having a lower valuation, not exactly fair.
Good luck and keep us posted.