1. Dear Alex, you need "exclusive possession" of this piece of land for 11 years together with an intention to come to own it. in practice, this means that you must fence off this piece of land and prevent other people interested in the ownership coming onto it, unless you give them permission. After the 11 years have passed, you can seek to do a first registration in the Land Registry on the basis that you have adverse possession or squatter's rights to this piece of unregistered land. The first registration is critical because it then converts your title into a registered title which is then good against all the world and which is not solely based upon possession. A squatter's title is based solely on possession. If a squatter loses possession of a piece of land, his title to it ends.
2. I would suggest that you get a solicitor to help you with a first registration of title to the land when you have it 11 years. I regret to say that two years occupation is not sufficient to found a possessory title in the Land Registry. You will need to hold it a minimum of 11 years.
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4. You don't need to inform the Land Registry that your 11 years of possession has begun. YOu only involve the Land Registry when you want to register your title after 11 years have passed. However, you should use the idea of a photo including a newspaper to date things.
5. Both are good ideas. You should also get some third party to swear an affidavit as to the date you entered into possession. This can then be used if you are doing a first registration in the Land Registry.
6. An affidavit is a statement made under oath before a solicitor/barrister/Commissioner for Oaths. It would be good evidence to offer in a court hearing. I only mention this because if a dispute ever arose, it would be good to have a sworn statement. A letter is good evidence, but you cannot admit it in court proceedings should someone come along and claim to be the owner of the piece of land.