If they own the property that your house is on, you don't have much choice. But, since they want the property so badly, just leave it as it is and walk away from it. Let them worry about breaking it down. They can't expect you to do anything with no utilities to run power tools and either can the courts. I suspect there's more to this story than meets the eye. Sounds to me like they want the house too, and this is their way to get to it.
Thanks
Mathew