Hi everyone and thanks for taking the time to help.
I live on a restricted residential parking street in Walthamstow (Aubrey Rd, E17 4SL), outside our house is space for two cars in a bay. When I returned home from work last night - a blue badge holder had parked right in the middle of both bays; unfortunately a common and frustrating problem as we are right next to the high street and blue badge holders often park there temporarily to access the shops. I parked up behind their car as tight as I could, expecting them to leave in an hour or so, meaning I could then just move forward into the space fully later. Unfortunately they did not leave, and I received a PCN this morning as my car was partially outside the lines, over a single yellow line that sits in front of a neighbour's unused garage. Because the available parking spaces on this road are very limited (and very tight spacing) my experience previously has usually been that the wardens will allow a grace of some distance over the line as long as it's not obstructing - however clearly that did not happen here.
My question as to whether a formal appeal is worthwhile or not relies on two possibilities that I can see:
1 - the reason for penalty was given as "01 - Parked in a restricted street during prescribed hours" however I have a valid virtual residents parking permit for this street. Would being partially outside of the parking bay be a valid reason to apply the above code? Or if that was the reason for the PCN, should that have been given as a different code, and therefore a valid reason to appeal?
2 - The area to the rear of the parking bay is a short, single yellow line that covers a neighbours garage entrance (irrelevant legally but this has never been used for vehicle storage or access - hence why I didn't feel obliged to keep clear for my neighbour's sake) however this yellow line has no sign to indicate restrictions - would this be grounds for appeal, or does this line mean no parking at any time (surely this should be a double yellow instead??)
Photos below
Penalty Charge Notice:

Photos of my car parked:



Photos of the bay:


Google street view:
https://maps.app.goo.gl/BStyESKskr2FVvAU9Thanks in advance for any help or advice!!