An historic Richmond charity has pulled out of a move to Hampton Court – but will still leave its current base.

The Royal Star and Garter Homes, which cares for disabled ex-service personnel, was set to move into a controversial new development opposite Hampton Court Palace.

But the scheme has been hit by delays and chief executive Mike Barter said the charity had reached the “very disappointing” conclusion it had to look elsewhere.

Mr Barter said: “The seemingly endless uncertainty surrounding the Hampton Court station site has become unsustainable and it would be irresponsible for us to continue holding on to this project when there is no solution in sight and every possibility that there could be further significant legal delays. This is of course a very unwelcome setback.”

At the end of 2008, Elmbridge Council gave planning permission for a scheme from developer Gladedale and Network Rail for a hotel, residential units, a new care home for the charity and a refurbished building at Hampton Court station on a site known locally as the Jolly Boatman – named after a pub that used to be adjacent to the station.

The plan was formally signed-off last summer, but Battersea architect Keith Garner is currently battling to have permission revoked and is seeking judicial review.

Last month, Mr Garner was given permission on appeal by the High Court to apply for a protected costs order (PCO), which would limit his exposure to financial penalty – said by his legal team to be up to £60,000 – if he were to lose the judicial review case.

The PCO is due to be heard later this month. If the case goes to judicial review it may be years until it is resolved.

Mr Barter said: “[Pulling out] is not a decision that was taken lightly, but there comes a point where you have to take a decision and decisive action.

“Good governance of the charity means to do that rather than waiting.”

Earlier this year Mr Barter said the delays to the move were costing the charity about £30,000 a week, and he reiterated how important it was for the organisation to leave its present home.

“[The current site] is more expensive for us,” added Mr Barter – whose charity has built a new care home in Solihull and is seeking to build two more, one near to its current Richmond location.

“We haven’t taken this decision because we have somewhere else that is better, but we couldn’t do anything until we ended our contract with Gladedale.

“The market is very different to when we were looking before.

“I recognise many people consider us their charity and we would love to find something suitable and accessible nearby. The search is starting.”

The home has been on Richmond Hill since 1916, and currently has about 60 residents.

A spokesman for Gladedale said although it was disappointed to lose the home, the development would continue as planned and a different care home would take its place.

He added: “This does not affect the viability or deliverability of the scheme.”