You are correct about the flue... this is where the regulations sit. The problem I have is that resiting the flue to an outside wall would HAVE to be done if a new boiler is needed (if the old one can't be fixed). If this should happen, it would probably be the same amount of hassle / cost to just resite the boiler rather than trying to run a flue to an outside wall. In an ideal situation I would want to put a new boiler in the existing site with the flue remaining in the chimney - this is where the regulations hit me.