The public accounts committee is to launch an inquiry into the Crown Estate and its leases on properties to members of the royal family, following questions over the lease of Royal Lodge to Prince Andrew. The committee's chair, Geoffrey Clifton-Brown, said that responses from the Crown Estate and the Treasury formed the basis for an inquiry, which will take place in the new year.
The Crown Estate confirmed that Prince Andrew is unlikely to receive any compensation for giving up his 75-year Royal Lodge lease early, due to required repairs. In 2003, he paid a £1m premium plus £7.5m upfront for refurbishment and agreed to a 'peppercorn rent (if demanded)'. The estate also revealed that the Prince and Princess of Wales hold a 20-year non-assignable lease on Forest Lodge, paying 'open market rent', with negotiations conducted at arm's length.
The inquiry will examine value for money to taxpayers, considering other homes including Bagshot Park and Thatched House Lodge. The committee will decide on witnesses after reviewing written submissions; while it could theoretically summon Prince Andrew, there is no modern precedent for a royal appearing in person, and the committee cannot force attendance.
The Crown Estate stated that end-of-tenancy repairs will likely mean Prince Andrew receives no compensation for early surrender. He gave 12 months' notice to surrender the lease on 30 October; without repairs, he would have been entitled to £488,342.21. The lease terms were independently reviewed as 'fair, reasonable and in line with market practice'. Prince Andrew will move to a private property on the King's estate at Sandringham in the new year.
