if you choose to remove the tree plus root ball, it is best to leave about 4 feet of the tree showing. this will help when you need to pull the tree into the hole you've just dug around one side.
I have found the best way is to put the spade in about 2' from the tree, and then hit the top of the blade with a sledge hammer. This should slice through the roots, continue this right round the tree. Then providing you have left a decent sized trunk, you should be able to wiggle it out.
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