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Building a Shed/Mini Gym Room

I have hired some builders to knock my old crappy shed down, to build a new bigger brick block type shed, with plaster boards, electrics, roofing, leveling and plastering which in total will cost me £3K.

So far we are at stage one where we have knocked the old shed down but had to leave one of the walls as it was too close to the neighbours fence and if we were to knock the wall down, the whole fence would be ruined.
However the builder has said to leave it, as its in good condition and they will build ontop of it for height and on the side for width.

My question is by keeping that one wall and having the rest of the walls as completely new, should that be a problem?

Heres the pic of how it is now - 25052008016sv0.th.jpg

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