Rock,
1) It forms part of Irish Law - 1904. Most of our laws have been inherited.
2) This would need to be established. As an Architect, I have dealt with this issue before. It requires surveys, drawings, and professional opinions based upon established practices and methods.
3) Yes, basicaly they have given up the easement (right to light) or it doesn't effect them, infringe upon the easement.
4) again no relevance, an easement is real property, and part of the house. If you rented your house, and someone decided that that meant they could build on your garden, because you weren't actually living there, and couldn't enjoy it, would it make sense?
On the plus side, as you are in posession, the burden is on your neighbours to prove that you have infringed upon their right to light.
Are they looking for an Architect?
Regards,
Niall