Windsor, 21 October 2025 — Newly released paperwork has laid bare why Prince Andrew can remain in Windsor’s 30-room Royal Lodge without paying market rent: a 75-year lease signed in 2003 that set the annual charge at “one peppercorn (if demanded)” and front-loaded costs into a set of lump-sum payments and renovations he agreed to fund himself. The lease runs until June 2078, covering Andrew, his ex-wife Sarah Ferguson and, by extension, provision for their daughters.
What the documents show
- No rent since 2003: The lease requires only a symbolic payment each year. Multiple outlets that have seen or obtained the agreement say Andrew has paid no rent for more than two decades under this structure.
- Up-front costs instead of rent: Andrew paid about £1m (~$1.3m) for the lease itself and committed at least £7.5m (~$9.5m) to refurbishments completed in 2005, with a notional rent pegged at roughly £260,000 (~$330k) per year for modelling purposes. In practice, those up-front sums substituted for ongoing rent.
- Stay-put incentive: If he gives up early, the Crown Estate would owe a tapering compensation. Current figures widely cited from the lease indicate ~£185,865 (~$235k) per remaining year until 2028 — around £558,000 (~$705k) if relinquished now — which falls to zero after the 25th year of the term. That creates a financial incentive to remain.
- Conditions to meet: Andrew must maintain the house and grounds to specified standards (regular interior/exterior works and landscaping), with the Crown Estate entitled to inspect compliance. No helicopter landings and no gambling are among the clauses.
Why it’s flaring now
The lease has become a lightning rod because it appears to shield Andrew from market-rate housing costs at a time when he has stepped away from royal duties and faces renewed scrutiny tied to his links with Jeffrey Epstein and allegations highlighted in Virginia Giuffre’s forthcoming memoir. (Andrew has consistently denied Giuffre’s allegations.)
Political pressure — but limits in law
- Opposition figures circle: Shadow justice secretary Robert Jenrick says Andrew should vacate Royal Lodge and “live in private,” reflecting mounting cross-party discomfort. Liberal Democrat front-bencher Lisa Smart has gone further, urging Andrew to “return every penny of rent he’s not paid.”
- No. 10’s line: Downing Street points to the National Audit Office’s 2005 review, which concluded the Crown Estate had not used special procedures for royals and that the transaction was appropriate at the time. The government has ducked calls to intervene directly, saying any re-examination is a matter for the NAO.
- Eviction unlikely: Legal commentary across reports suggests forcible removal is improbable unless Andrew breaches lease terms, bolstering his position even amid public criticism and the King’s reported preference that he downsize to Frogmore Cottage.
How we got here
The Crown Estate opted for a long lease with tenant-funded renovations in 2003 because Royal Lodge needed extensive modernisation and sits inside Windsor Great Park, where security limits commercial options. At the time, the NAO assessed the arrangement as value for money relative to “grace-and-favour” usage that would have generated no revenue and left taxpayers with the refurbishment bill.
What’s next
Expect continuing calls for scrutiny — and for Andrew to move — but don’t expect quick change. The lease’s cast-iron terms and the compensation taper mean the financial logic favours staying put through at least 2028, when the early-exit payment provision expires. Politically, the story will track any NAO decision on a fresh review, and whatever emerges from the Giuffre memoir and related investigations.
