Andrew Mountbatten-Windsor has reportedly earned money by subletting three cottages located within the Royal Lodge estate, despite paying only a nominal rent for his former residence. The former Duke of York’s lease for his previous 99-acre Windsor estate allowed him to sublet three out of the eight buildings on the property in a private agreement with tenants, enabling him to keep the rental income.
The exact amount of money Andrew made from subletting and the duration of the sublets remain undisclosed, leading to mystery surrounding the deal. A royal insider mentioned that Andrew rented out the cottages to staff at a rate that covered maintenance expenses for the Royal Lodge estate.
Photographs of the Windsor mansion taken before Andrew was compelled to move to a smaller Sandringham residence due to controversies linked to his association with Jeffrey Epstein revealed the deteriorating condition of the property, with signs of neglect such as peeling paint and cracks in the walls.
Mountbatten-Windsor, who was arrested for alleged public misconduct earlier this year, is not expected to receive compensation ranging from £300,000 to £400,000 from the Crown Estate for surrendering the Royal Lodge lease prematurely, owing to the necessary dilapidation costs.
The recent revelations about his subletting activities at Royal Lodge were disclosed in a report by the National Audit Office (NAO) following concerns raised by the Public Accounts Committee regarding royal property arrangements and taxpayer value for money. The report shed light on the varying rent and lease terms for members of the royal family, highlighting discrepancies in property management between the Crown Estate and the Royal Household.
Norman Baker, a former Liberal Democrat minister and royal finance expert, criticized Andrew’s subletting arrangements as “outrageous.” He estimated that similar cottages in the vicinity of Royal Lodge could command annual rents of up to £30,000 each, suggesting that Andrew may have potentially earned around £2 million over two decades through subletting activities.
Andrew still holds the lease for Royal Lodge until October 2026 and is currently serving a one-year notice period after relinquishing the property. The lease, negotiated in 2003, required Andrew to invest £7.5 million in renovations, which he reportedly fulfilled, resulting in a reduced capital premium payment and a nominal rent agreement.
The NAO report did not evaluate the value for money aspect but will serve as the basis for further scrutiny by the Public Accounts Committee into royal property matters. The report also highlighted that non-working royals like Prince and Princess Michael of Kent have their accommodation expenses at Kensington Palace covered by the King, raising questions about transparency and financial accountability within the royal household.