Landlord is Remodeling the Basement of a House We're Renting

My question involves landlord-tenant law in the State of: Pennsylvania
I moved into a house a month back and signed a year lease. My lease states the address, and lists me as the sole occupant of the residence. Prior to my moving in I understood the basement was off limits, and was told by the landlord he would be using it for storage. No problem. However, a week after moving in, I noticed a light on down in the basement (which is running on my electricity). I looked through the window and saw my landlord and his friend doing work down there. I asked him what was going on and he informed me he is converting the downstairs into an apartment. I'm assuming he has a right to do this since it is his property. However, this was not made known to me prior to my moving in or else I would have never moved in. When I asked him why he was using the lights (as I am repsonsible for paying the utilities) he got mad and said "oh, what is it a few dollars?" I told him I didn't give him permission to use the electric, so over the next few days he worked in the dark until he rewired it so it was no longer part of my meter. Now he is here day and night banging down walls, ripping up floors, making tons of noise. The water department has torn up the lawn as they are putting in a separate water line and there are constantly construction trucks parked in front of my house so I have to park in a lot across the street. The noise goes on til about 8:00 at night. A few nights ago there was a truck outside with the driver throwing left over bricks and sheetrock at 10:00 at night, which woke me up. Wouldn't his be considered a breach in my quiet enjoyment of the property? Not to mention, now I will have someone living downstairs from me who I don't know from a hole in the wall. Can I legally break this lease on any grounds, and should I notify the landlord of my intention first? Can I ask for a rent reduction for my final month? I would like to give a 30 day notice as soon as possible. I did already look into it and he does have all the proper permits. Please help!:grumpy:

If you are talking about parking on the street, that's public parking. If you want to be able to park in front of the house, consider asking your landlord to tell his workers to leave space.

I have no information about what hours you're in the unit versus the hours of work, but it's perfectly reasonable to ask that your landlord confine construction work to times when it does not disturb your ability to live a normal life in your unit. What did your landlord say when you discussed the noise issues with him?

Presumably the basement, once remodeled, will have a separate entrance - no?