Hi all. I live in a 1940 house that has 2 of these high-up windows above my neighbors roof, one in a bedroom and the other in a nook area. Both outside and inside frames have been fixed before and are deteriorated. I believe there has been water damage given the bubbles. I am trying to figure out what I should do about it.

- The wall with big bubble is from the interior nook area and it's stucco on the exterior. The beige wall with small bubble is in the bedroom and outside has siding.- Aesthetically, the interior wall damage doesn't bother me as all walls in the house have cracks given lath and plaster walls, and I would eventually repair when we paint walls again. But I worry there could be mold growing and could spread.

- We don't care so much about these windows as light source as we have it shades down 99% of the time. The nook has a big glass door to outside and kitchen has windows and skylight. And the bedroom has other larger windows. But, could future buyers want them?

A couple of years ago I actually called a window replacement guy to look at them and I was surprised he said I didn't need to replace them and could just get the stucco/siding person to seal them. Which I did, but seems to deteriorate a lot and quickly, sun hits all day.

I think I either need to replace it completely or just remove them and wall-up. What's your suggestion so it's water tight? I wouldn't want damage again if I repair the walls.

Obviously it seems there are problems with how my neighbors roof was setup, and there are parts with cracks or ungluing. What's the best way to fix and who is responsible?