Thank you so much for the help people! Although the two of you do seem to have had a bit of a misunderstanding, your two very different ways of approaching the problem coupled with your interaction is in my opinion very helpful!
I am no expert in lighting and have only recently started using Blender (since 2.8). I have a tiny bit of experience in 3D software, but completely new to UV and lightmap aspects of it. I have learned how to do the texture UV at least. In a simple setup like this it just seems impossible to me for this issue to be present, especially at this scale. Requiring tweaking for this is very frustrating… Ok I ranted, now back to it.
Preston: I set light bounces to 1. Removed skylight, directional light and skybox to simplify everything. The point light inside the box is not overlapping the mesh. I adjusted penumbra size both ways. Results are still the same with tiny differences.
MakiGirl: Added importance volume, lightmap compression turned off, problem still there. Raised the lightmap resolution from 64 to 256 as well.
I can’t help but get the feeling something is wrong with my model! Would I be allowed/able to attach my raw blender model file in this forum for someone to download and see if I missed something very basic?!
I reverted all settings except for the lightmap resolution as I do understand the worry about it being too low. Screenshot of the scene attached. My actual project uses small single floor building for the game level and there I have the exact same type of problem.
Thanks again for all your help, I really really want to get past this!