UNLAWFUL building work has been carried out in Reigate's historic Bell Street.
A locally listed building, once the home of Italian restaurant La Lanterna, has "ceased to exist" after being subjected to major renovation work for most of the year.
Former owner Tony Marcazzo had approval to build a ground-floor extension at the back, and alter the first-floor flat to provide two two-bedroom apartments.
But Reigate and Banstead Borough Council asked for work to be stopped after the building was "substantially demolished without permission".
The three-storey detached building has now changed hands, and new owners, developers Buxton Homes, want to carry on the reconstruction.
But Bell Street resident John Maillie, who has lived next door to the restaurant for 12 years, said the site is "a wreck".
The unauthorised works have resulted in the building being attached to Mr Maillie's Grade II- listed property.
The 53-year-old businessman told the Mirror: "It's really got to the stage where something has to be done.
"I have been living on a building site since January. Everybody hates this scaffolding."
Mr Marcazzo was first granted permission for the renovations in 2010, renewed in 2013.
However, Mr Marcazzo voluntarily stopped construction work after the council raised concerns.
In August, the building was sold to developers Buxton for £500,000. The firm has now asked the council for permission to complete the build.
In recommending Buxton's application for refusal, council conservation officer John McInally stated: "The building was locally listed but was substantially demolished without permission."
Mr McInally added that the proposed building's appearance would be "harmful" to the street scene and its "out of scale" and "awkward" features would make it lack the "symmetry and balance that would be expected of a building in a Conservation Area".
Mr McInally also confirmed Mr Maillie's claims that the building work has resulted in damp issues in his home.
Kelvin Hinton, the council's development quality manager, said: "The works carried out by the previous owner of La Lanterna were not in line with the approved planning permission, and so were unauthorised.
"In response to the unauthorised works, the developer voluntarily ceased works on site.
"As such, no formal planning enforcement action was needed at that time. The new owner has since made a planning application for a single-storey rear extension and alterations to the building to accommodate flats, which we are considering at the moment."
The council will decide whether to grant permission by December 24.
The Mirror understands Mr Marcazzo is planning to reopen the restaurant.
