Paul McCartney, Heather Mills reach a stalemate in divorce; Heather wants 2 more houses

Paul McCartney and Heather Mills' divorce proceedings have reportedly reached a stalemate - Heather is allegedly demanding that the former Beatles star, who failed to reach a settlement with Mills at the Royal Court of Justice in London last week to hand over their $4 million former marital home in Hove, East Sussex, and his $12 million  property in LA.

A source close to the pair said said: "It has literally come down to bricks and mortar.

"She has asked for two of Sir Paul's estates. She wants two of the properties for herself, even though she already owns a place in Sussex. Paul has said no. They are back to square one."

As well as having a home in Sussex, Mills also has another home where she lives with hers and Paul's three-year-old daughter Beatrice.

Talks between Heather and Paul - who split in May 2006 following a four-year marriage - are also said to have broken down over the former model's refusal to accept the 65-year-old singer's $100 million gagging order.

Heather was said-to-be willing to sacrifice $28 million from her payout so she could talk about their relationship on US chat shows and write a revealing autobiography.

The final divorce settlement is hotly tipped to be one of the biggest in British history.

Paul, who is worth around $1.6 billion, is said to be eager to reach an agreement as quickly as possible in private without resorting to taking the case to open court.