Andrew Mountbatten Windsor to miss out on $1m compensation for vacating Royal Lodge as probe into royal finances is announced

Andrew Mountbatten Windsor can continue to live at his 31-bedroom Windsor property until the end of next year.

But the former prince will miss out on receiving nearly $1 million in compensation for handing back his lease on the home early, owing to the amount of repairs needed on the heritage-listed building.

The development comes as an inquiry into the Crown Estate's housing arrangements was announced, with the probe likely to put the royal family's finances under further scrutiny.

The details of Andrew's lease were published by the Public Accounts Committee on Tuesday, as it demanded answers from the Treasury and the Crown Estate about the way the royal family's properties were managed.

It follows revelations the 65-year-old had paid a peppercorn rent on the lease of his property Royal Lodge after an initial outlay of £8.5 million (approx. AU$17 million).

Peppercorn rent is a term referring to a nominal sum paid in order to satisfy legal constraints. It's origins come from leases which required a single peppercorn to be paid annually and can be a small sum, as much as £1.

In October, Andrew was forced to surrender the lease early – which was due to expire in 2078 – following anger over his relationship with convicted sex offender Jeffrey Epstein.

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Head of the Public Accounts Committee Sir Geoffrey Clifton-Brown said: "In publishing these responses, the Public Accounts Committee fulfils one of its primary purposes – to aid transparency in public interest information as part of its overall mission to secure value for money for the taxpayer.

"Having reflected on what we have received, the information provided clearly forms the beginnings of a basis for an inquiry. The National Audit Office (NAO) supports the scrutiny function of this committee.

"We now await the conclusions the NAO will draw from this information, and plan to hold an inquiry based on the resulting evidence base in the new year."

While Andrew could be summoned to give evidence, if he refuses there is little the government can do.

Meanwhile the Crown Estate revealed on Tuesday that Andrew can remain in Royal Lodge until October, 2026.

He served notice the property on October 30 this year, with a minimum of 12 months' notice under the terms of his lease.

However, he is expected to move out in the first quarter of 2026, The Telegraph UK reports.

Andrew will live in a smaller property on the King's private Sandringham estate in Norfolk.

He will move out of Royal Lodge as soon as the new home is ready, it is understood.

But Andrew will not receive any compensation for surrendering his lease on Royal Lodge early because extensive repairs are needed on the Grade-II listed site.

He originally stood to receive around £488,342 (approx. $982,000) for handing back his property before the lease expired.

Royal finances under scrutiny

On Tuesday, the Public Accounts Committee also published details of leases held by the Prince and Princess of Wales and the Duke of Edinburgh.

Earlier this week The Times revealed Prince Edward, who is Queen Elizabeth II's youngest son, was paying 'peppercorn rent' on the 120-room mansion he lives in with his wife, the Duchess of Edinburgh, in Surrey.

The disclosure sparked questions over whether the royal family can now justify Prince Edward's occupation of Bagshot Park, which could otherwise be leased for taxpayer benefit.

Prince Edward has leased the 51-acre Bagshot Park from the Crown Estate for the past 25 years.

According to the terms of Edward's lease extension, signed in 2007 with his company Eclipse Nominees Limited, the prince paid £5 million (approx. $10 million) upfront for a lease of 150 years, but pays only a peppercorn rent.

The Crown Estate said Prince William and Catherine's new home, Forest Lodge in Windsor, is held under a "20-year non-assignable lease" with the Crown Estate that began on July 5 and have "open market rent", The Telegraph reports.

"Negotiations were conducted on an arm's length basis, to ensure appropriate market terms were agreed," the Crown Estate said.

Independent valuers were appointed to value the property, the Crown Estate added, while the couple received independent legal and property advice.

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