A SMALL group of pensioners at the centre of a long-running legal battle are heartbroken after being ordered to attend mediation as their fight for compensation continues.

The six residents who continue to live at Hastings Point Holiday Village have been locked in a battle for compensation for their homes since Queensland company TriCare purchased the park in 2011 and issued residents with an eviction notice.

The matter has dragged on for more than five years with the parties unable to reach agreement on the worth of the homes.

A resolution was expected at a NSW Civil and Administration Tribunal hearing in Sydney last week but instead the parties have been ordered to attend a mediation session.

Resident Judy Tucker said she and her neighbours were stunned by the decision.

"This is just heartbreaking,” Mrs Tucker said.

"It's laughable that after 5-1/2 years this is the first time mediation has come about. If it had been done 4-1/2 years ago it might have been worthwhile but I don't expect this to be resolved at mediation.

"The parties are so far apart.”

Fellow resident Kevin Byng, who with wife Lorraine has lived at the now-derelict park for 24 years, said the developer's offers of compensation were well below valuations.

"They are offering us $20,000,” the 74-year-old said.

"Our valuers quoted $135,000 last year. I can't afford to move.”

Mrs Tucker said the amount of compensation being offered meant it was impossible for the pensioners to afford to live elsewhere.

"All we are asking is for reasonable compensation for our homes so we can afford to put a roof over our heads somewhere else,” she said.

"It's a straight out case of corporate bullying.

"This man has a multi, multi-million dollar business and he's going up against five pensioners.”

"We own these homes. We don't own the land but we have the right to have a similar home.”

TriCare plans to utilise the land to allow for expansion of its Hastings Point Retirement Community.

TriCare did not respond in time to questions regarding the matter but company director Peter O'Shea has been quoted previously as saying the company is keen to resolve the matter as soon as possible and that the offers made to residents of the holiday park have been fair and reasonable.

Paul Smyth, a lawyer from the Tenants Union which has been representing the residents, described the decision to send the parties to mediation as "quite strange”.

"Indications from both sides were that they didn't see much utility in mediation but the tribunal didn't just recommend mediation, they ordered mediation take place,” he said.

The mediation is set to take place in Tweed Heads early next month.