The Duke of York is now thought unlikely to receive a substantial compensation payment for surrendering his lease on the 30-room Royal Lodge, following an assessment of the property's condition by the Crown Estate.
Compensation Claim Effectively Vetoed by Property's State
Prince Andrew could have been entitled to £488,342.21 for giving early notice to leave the Windsor mansion. He formally submitted the minimum 12 months' notice on 30 October 2025, which would have seen his tenancy end on 30 October 2026.
However, the Crown Estate has indicated that this payout is now improbable. An inspection carried out on 12 November revealed the scale of end-of-tenancy repairs and dilapidations required. While these were described as not unusual for a lease of this length, they are expected to negate any compensation owed.
In a statement, the Crown Estate said: "Our initial assessment is that while the extent of end of tenancy dilapidations and repairs required are not out of keeping with a tenancy of this duration, they will mean in all likelihood that Andrew Mountbatten-Windsor will not be owed any compensation for early surrender of the lease… once dilapidations are taken into account." A final, expert assessment will be made after he vacates the property.
Commons Committee Launches Inquiry into Crown Estate Leases
The details emerged in evidence provided to the Commons Public Accounts Committee by Crown Estate chief executive Dan Labbad. The information has prompted the committee to announce a formal inquiry into the Crown Estate's management of royal properties.
Sir Geoffrey Clifton-Brown, chairman of the committee, stated: "Having reflected on what we have received, the information provided clearly forms the beginnings of a basis for an inquiry." The National Audit Office will first analyse the evidence, with the parliamentary inquiry planned for the new year.
The disclosure highlighted the stark contrast between Andrew's arrangement for Royal Lodge and other royal leases. The Duke had paid a peppercorn rent for the large property, which he agreed to leave amidst the ongoing controversy surrounding his association with the convicted sex offender Jeffrey Epstein.
Contrast with Other Royal Property Deals Revealed
In contrast, the Crown Estate confirmed that the Prince and Princess of Wales's new home, Forest Lodge in Windsor Great Park, is leased on "appropriate market terms." William and Kate will pay an open market rent under a 20-year common law tenancy.
Details were also provided regarding other royal residences, including:
- The Duke and Duchess of Edinburgh's Bagshot Park.
- Thatched House Lodge in Richmond Park, London.
The inquiry will scrutinise these arrangements to ensure value for money and proper management of publicly held assets. The focus on Royal Lodge underscores the financial and reputational fallout from Prince Andrew's ties to the Epstein scandal, which continues to impact his standing and the monarchy's operations.
