We have the original chain link fence at the bottom of the garden. Then the neighbour at the back built a decorative block wall just inside his boundary. When he moved, the new occupant built a wooden fence in his side of the block one. I can only assume he didn't think the block one was very decorative after all.
I did get a letter stuck through my door telling me that the tree in my garden was blocking the light into his garden and that I should cut it down. If it had been my tree I would have told him to go away (polite version) as he hadn't had the decency to speak to me about it. In fact it is growing between the chain link fence and the block wall on his property, so it's his problem. Only difficulty he has is that he can't get at it because of the fence .
Had he been decent with me I would have happily cut it down for him, but now there is no chance.
I'd have kept quiet, cut the tree down and continued to use the extra land as my own!
That sounds a good solution to me. Your neighbour cannot force you to put up any fence, or anything to indicate the boundary (I used to do conveyancing). The others are right in that "T" marks on any property plans indicate which boundary belongs to which property but very often there are no plans. I wouldn't go to any expense over this. He is just being a bit silly, so ignore him. An 8ft high fence is a bit unreasonable but if it doesn't bother you, I would live with it. Perfect opportunity to grow plants up "your" side!
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I'd have kept quiet, cut the tree down and continued to use the extra land as my own!