A National Audit Office (NAO) report has revealed that Prince Andrew received private income from subletting three cottages on his Windsor Royal Lodge estate while paying a 'peppercorn rent' to the Crown Estate. The report, published on Friday, details the financial arrangements of several royal properties.
The NAO found that Andrew's lease permitted subletting, though the amount he received is unknown. Sources suggested the subletting did not generate a profit, with rent set to cover only maintenance and running costs for staff. However, no figures or rental agreements have been made public.
King Charles pays an 'adjusted rent' from his private Duchy of Lancaster income for Princesses Beatrice and Eugenie to live in royal palaces. Beatrice's St James's Palace apartment rent is 68% of market value, while Eugenie's Kensington Palace cottage is 64%. The King also pays rent for Prince and Princess Michael of Kent's apartment.
The Prince and Princess of Wales pay £307,200 annually for a 20-year lease on Forest Lodge in Windsor, after the Crown Estate carried out £400,000 repairs. They paid no upfront premium and are responsible for internal refurbishments.
Andrew, now evicted to Marsh Farm on the Sandringham Estate, paid a £1m premium and £7.5m on refurbishment for Royal Lodge under a 75-year lease in 2003. He could be entitled to up to £488,342 compensation for surrendering the lease early, though the Crown Estate says dilapidations may negate this.
Former Liberal Democrat minister Norman Baker criticised the arrangements, stating Andrew's subletting added 'insult to injury' and that the money should have gone to the Crown Estate.
