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Defunct land next to house

Hello!

This is a weird one - our house at the end of a cut-de-sac has a lane running down the side - we have been here for 7 years and it's not been used in that time - speaking to the neighbours, the lane hasn't been used for decades. The local council still maintain a street light at the top of the lane! After calling both the town council and the local council, I was told it does not appear on any of their maps detailing 'rights of way' etc.
Now the neighbour on the opposite side of us and the lane has taken down a fence panel and cleared the lane which backs onto their boundary - built concrete raised beds, blocked both ends of their patch with concrete and fence panels and declared it theirs after 2 years!
I did some research and it appears that the original builders of this estate back in 1965, had the lane as part of their development - this company has now ceased to trade, gone into receivership but this is still unresolved as of 1977.
Speaking to the uncle of the owner (he's the one doing the work) he says he's just helping his niece and said after 2 years it will become hers.
I have the original plans showing the lane as part of the development - the local council claim not to know about the lane but they're still maintaining the street lights - one at the top near us and one at the bottom road where the lane originally ended! The rest of the lane is overgrown and a real jungle - it would take weeks to clear it!
Any suggestions as to what we should do?
Thanks for any help!

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