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Do we know that the problem/issue is? Just because a tree is close to something doesn't mean it can be blamed for issues with a building. Its the easy thing to assume (just because its there), so cut the tree down then realise its nothing do to with it...
I would be asking what the issue is, evidence its being caused by your tree roots.
@Pantsmaster - either way I would probs get someone to do some hard pruning on that and try and bring it back into shape.
Yeah to be clear I’m probably more interested in keeping good relations with next door and reducing long-term cost than keeping the tree, but if there are options to do all 3 then great!
As far as I can tell, they would have to prove definitely that any damage potentially caused by a tree is actually caused by it, and perhaps we might only be liable for any damage after they’ve actually informed us? I think they have the right to cut through the roots on their land too (similar to overhanging branches).