I think "there' or 'over there' could be dropped.
Since the Danish version also makes sense (and is correct) with 'der' dropped, including 'there' provides the closest translation
And 'that hill over there' is quite correct in english. The '(over) there' emphasises that it's the hill the speaker is pointing to, and not, say, the hill on the right.
Or could be placed after lives?
Bakkerne har øjne
Why "den bakke" and not "bakken"?
"bakken" would be "the hill", whereas "den bakke" is "that hill".
Hvordan siger billy i Dansk?