Prince Andrew and Sarah Ferguson are facing being sued over claims of missed payments on a chalet in the Swiss skiing resort Verbier.
The Duke and Duchess of York are said to have bought shares in the property in 2014 for around £13 million but do not own it outright.
The Yorks, along with their daughters Princess Beatrice and Princess Eugenie, typically visit Verbier after Christmas most years and stay in the seven-bedroom luxury property, which has been dubbed Chalet Helora.
It has been alleged that they missed a payment deadline in December and face four months of unpaid bills on the property.
French newspaper Le Temps has suggested about £5 million in payment had been due on the chalet and now that number has increased to £6.7 million with interest.
The French publication claims the payments were outstanding despite the Duchess ‘promising that payment would be made’.
It is believed that the chalet’s original owner, who also retains a share in the property, has started court proceedings.
A source close to the royals told Mail Online: ‘They (the original owners) have really gone for the jugular and want their money.’
The publication also reports that a friend of the Duke had claimed the royals had made plans to sell their shares in the chalet and had intended to use the proceeds to clear any outstanding debt.
A spokesman for Prince Andrew said: ‘We can confirm there is a dispute between the two parties in this matter.’
‘The contractual details remain the subject of a confidentiality agreement and prevent further discussion.