Prince Harry and Meghan Markle have reportedly saved £690,000 thanks to a deal that meant they didn't have to pay any rent on Frogmore Cottage. The deal was apparently established when the couple paid £2.4million to refurbish the property.
When they moved in back in 2019, it was expected that they'd have to pay a "commercial rate" for rent. The estimated rental value of the cottage is between £150,000 to £230,000 annually, which means the Sussexes may have spent the last three years saving approximately £690,000.
The Mirror reported that earlier this month, Harry and Meghan had been asked to leave Frogmore Cottage - and they won't renew their lease when it expires later this month. The deal with Buckingham Palace considered the increase to the value of the property following the work done should be taken as “rent in lieu”, the Mail on Sunday reports.
A Palace spokesperson said in quotes reported by the Mail: “The Duke and Duchess of Sussex made a contribution of £2.4million to the Sovereign Grant which covered the refurbishment of Frogmore Cottage. They have fulfilled their financial obligations in relation to the property.
“In line with usual practice for the Sovereign Grant report, the accounting treatment was scrutinised and signed off by the National Audit Office and the Treasury. As with any such agreement between landlord and tenant, further details regarding the Sussexes' tenancy arrangements would be a private matter.”
But this has sparked the interest of one critic to find out how many other royal properties are being rented out below the market rate. Former Liberal Democrat MP and Privy Counsellor Norman Baker said in the Mail: “It is outrageous that Harry and Meghan should be able to live in a huge house on these terms while regular people struggle to put food on the table.”
The Sussexes made Frogmore Cottage their home back in 2019 as they moved in after extensive renovation work which converted the building from multiple residencies into a large family home.
When they stepped aside from their royal duties to become “financially independent”, Buckingham Palace released a statement saying it was the couple's “wish to repay Sovereign Grant expenditure for the refurbishment of Frogmore Cottage, which will remain their UK family home”.
The deal to wipe out future rent obligations as part of the payment was not made public at the time. Buckingham Palace confirmed that the £2.4million was split into three headings and recorded across two sets of accounts.
In the 2020/21 Sovereign Grant figures, the lump sum was listed as both “rental income” and as “recharges for functions and other income”. A year later, the remainder of the lump sum appeared in the accounts as “deferred income under current liabilities”.
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