Alcove bookcases on external wall with damp issue

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Hi all, looking for some advice on a new project I am hoping to get done this month....

I'm planning to build some some built in bookcases in the alcoves in our dining room (see attached pics plus one of the kind of thing I am thinking).

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The main issue is it's an end of terrace wall which has some damp issues caused by the neighbours patio, which backs on to the wall. It's at a higher level than our internal floors, and there's no french drain installed. Given our neighbour is unlikely to agree to ripping up their patio, our only option I can see is to hack of the plaster up to about 1m and tank the wall, and then I am thinking batten and insulate with foil backed board over that to give a damp and condensation free surface to build the bookcases against (see diagram below).

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Does this sound like a good approach? I know there are things like cold bridging, dew points etc that I need to be mindful of.. I don't want to create a mould hazard!

Keen to hear other approaches (especially if they would save money!) if people foresee issues with this approach, or equally if it's overkill... I'm wondering as there would be an air gap between the battens and the insulation board whether tanking is actually necessary?

Thanks in advance!
 
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