Heather Mills has reportedly been telling friends that she’ll have to sell her Sussex home to pay off legal debts accumulated during her divorce battle with estranged husband Paul McCartney.

Heather reportedly owes law firm Mishcon de Reya around £2million in legal fees and has been threatened with court unless she settles the bill in good time. She is said to originally have had a deal to pay off the fees when the financial aspect of the divorce was settled in February but after the firm dumped her as a client in November following her TV interview outbursts, they reconsidered their position, believing that the settlement might not cover all her debts.

An inside source told the Sunday Mirror: “Heather is telling friends that relations have broken down so badly between her and the lawyers she will have to sell her new house to pay the debt. This Christmas she’s been facing up to losing her home.”

After they separated in May 2006, Paul bought the £3.25million property for Heather so she could raise their now four year old daughter Beatrice near his Peasmarsh estate.

The source added: “She’s decided to fight her divorce without solicitors. But now the house has to go. It’s a shame because she and Bea have just started to settle in there.”

Heather will still own a sea-front property in Hove and is said to have been asking for either a home in London or the Hamptons in New York as part of the divorce settlement.