Andrew Mountbatten-Windsor is unlikely to receive any compensation for leaving the Royal Lodge early due to repairs needed to be carried out after his tenancy.
The disgraced royal is set to move out of the residence on the Windsor Estate early next year after he was formally stripped of all his titles over his ties to late paedophile financier Jeffrey Epstein.
In his 2003 lease, it was agreed he would be paid a “compensatory sum” - amounting to £488,342.21 - if he were to move out of the 30-room mansion before 2078.
But the Crown Estate has told MPs on the Public Accounts Committee that the King’s brother will probably not receive any of this due to the state of the property.
It said after an “initial assessment” of the 30-room mansion on November 12 it was likely he “will not be owed any compensation for early surrender of the lease… once dilapidations are taken into account.”
The Crown Estate also revealed that the Prince and Princess of Wales, who moved into their new home Forest Lodge with their children in the October half term, pay “open market rent” on their 20-year lease.
This is in stark contrast to Andrew’s agreement, which saw him live in the property on a ‘peppercorn rent’ since 2003, although he paid £1m for the lease and a further £7.5m for refurbishments.
The details were shared in a letter from the Crown Estate to Public Accounts Committee last week, responding to questions about the lease arrangements for Royal Lodge.
The committee said it will now launch an inquiry into the Crown Estate’s property leases to the Royal Family as it published the correspondence on Tuesday.
“Having reflected on what we have received, the information provided clearly forms the beginnings of a basis for an inquiry. The National Audit Office supports the scrutiny function of this Committee,” committee chairman Sir Geoffrey Clifton-Brown said.
“We now await the conclusions the NAO will draw from this information, and plan to hold an inquiry based on the resulting evidence base in the new year.”
In its letter to the MPs, the Crown Estate said Andrew gave the minimum 12 months’ notice that he would surrender the property on October 30, and would have been entitled to the compensation for ending his tenancy on October 30 2026 if no repairs were needed.
It said though it was unlikely he would receive compensation, a “full and thorough assessment” must be carried out first post-occupation by an expert.
As well as details of the Royal Lodge and Forest Lodge properties in Windsor Great Park, the Crown Estate also provided information on other homes including the Duke and Duchess of Edinburgh’s Bagshot Park and Thatched House Lodge in London’s Richmond Park.
Detailing Kate and William’s new lease agreement, the Crown Estate said William made an approach, and after discussions with the Royal Household, the Crown Estate commissioners were asked to consider the lease of the Forest Lodge for use as their “primary private residence”.
“Negotiations were conducted on an arm’s length basis, to ensure appropriate market terms were agreed,” the Crown Estate said.
It said independent valuers from Hamptons and Savills estate agents were appointed to value the Grade II-listed mansion, and William and Kate received independent legal and property advice, as did the Crown Estate.
“The lease for the Property was concluded on a 20-year Common Law Tenancy at an open market rent subject to standard Landlord & Tenant repairing obligations. The rent was assessed by Savills and Hamptons acting on behalf of the Crown Estate. Knight Frank acted for TRH’s The Prince and Princess of Wales,” the Crown Estate said.
Andrew was formally stripped of his last remaining royal titles on Monday, as the King ordered that his membership of the Order of the Garter, to which he was appointed in 2006, be removed.
Mr Mountbatten-Windsor’s appointment as a Knight Grand Cross of the Royal Victorian Order is also to be cancelled and annulled, records published in The London Gazette show.
The 65-year-old has been stripped of both his HRH style and his prince title. He still retains his rank as a vice-admiral in the Royal Navy – but defence minister John Healey has said this is being looked at with Buckingham Palace.
Mr Mountbatten-Windsor’s role in the family came to an end over growing concerns about his association with Epstein. The former duke has faced allegations that he sexually assaulted a teenage Virginia Giuffre after she was trafficked by Epstein. He strenuously denies the accusations.
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