Rebuilding major parts of a Junction house to gain additional space and a better layout for current desired living use has become easier than ever with the growth of more designers and contractors with the experience and knowledge to perform such work.
Shown in these photos is a house which is just like your adversary Junction house located in the east end of the city where rebuilding the house was a more economical choice than renovations with the way the owners wanted to use the house.
The photos here hi-light the protection and strengthening of the houses on either side of the lot wherE the house is being replaced. You can see at the earth to building interface the new concrete used to underpin the neighbouring houses.
Below is an interesting photo with the backhoe say in the narrow space between the surrounding houses.