Building a shed right on a boundary

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Ok, so I plan on pulling down an old wooden shed in my garden and replacing it with a block built shed. An obstacle which I need to overcome is that the original shed is right on the garden boundary, and for most parts acts as the boundary 'fence/wall' so to speak. Next door have a similar setup with the two sheds kind of overlapping.

Now, obviously I won't be able to have the wall of a new block built shed to run right along the boundary as it would mean undermining nextdoor's shed to put the footings in, plus it would leave me unable to do anything with the external area of said wall.

So I'm wondering what realistic options I've got here with regards to how much of a gap to leave between boundary and the shed wall. Due to the width of the back garden, I don't want to be leaving too much of a gap as this would eat into the usable space of the garden, or lessen the width of the shed. I'm wondering, if I was to leave a gap of a foot or so, would I be able to clad the exterior of that side of the shed with something to give it a finish?

Has anyone else had this kind of issue? Or any ideas?

Thanks,

Blakes.
 
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There is no reason why you can't build the wall right on the boundary and adapt the foundations to suit. You wont need to worry about the external face of the wall either
 
Thanks Woody, that's good to hear. I was a bit sceptical about leaving one side of the shed as bare blocks, but I guess it won't really be exposed.
 

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