Dilapidated Royal Lodge Ends Compensation Deal
The disgraced royal, stripped of his princely titles last month, had been in line for a $983,000 (£488,000) payment in exchange for surrendering the 31-bedroom Royal Lodge before the end of his 75-year lease.
However, the property’s deteriorated condition and the extensive repairs it now requires mean the 65-year-old will likely walk away with nothing.
Andrew moved into Royal Lodge in 2003 with his former wife, Sarah Ferguson. He paid a symbolic “peppercorn rent” and provided more than £8.5 million upfront to fund renovation work.
Lease Terms Depended on Proper Maintenance
Under the terms of his lease, Andrew was entitled to reclaim part of his initial investment if he left the property within 25 years — but only if he had kept the estate in good condition.
A newly released Crown Estate report, published by the UK’s Public Accounts Committee, states that although Royal Lodge’s current state is “not out of keeping with a tenancy of this duration,” the substantial repair work required means Andrew will not qualify for any payout.
Crown Estate Findings
“The Crown Estate met with representatives of Andrew Mountbatten-Windsor on 12 November 2025 to begin to discuss the process for the formal surrender of Royal Lodge. This meeting included a preliminary internal inspection of the property.
“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 as per clause 3.21.12 of the lease once dilapidations are taken into account,” the report said.
Inquiry Into Royal Property Leases
The Public Accounts Committee will now open an inquiry into the Crown Estate and how it manages leases on properties occupied by members of the Royal Family.
Committee chair Sir Geoffrey Clifton-Brown said that issues surrounding Andrew’s tenancy “clearly forms the beginnings of a basis for an inquiry,” with proceedings scheduled to begin next year.
It remains unknown whether Andrew — or any other royal — will be asked to testify.
