'Obscene': Revelations Prince Edward pays 'peppercorn rent' for 120-room royal mansion
The Duke of Edinburgh and his wife are paying what is known as a 'peppercorn rent' on their 120-room mansion in the English countryside.
The disclosure, by The Times newspaper, has 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.
The royal family's finances are now under more scrutiny than ever after revelations made last month that the former Prince Andrew, now known simply as Andrew Mountbatten Windsor, had paid a peppercorn rent on the lease of his property Royal Lodge after paying an initial outlay of £8.5 million (approx. $17 million).
The lease of Prince Edward and his wife Sophie's home, Bagshot Park, is now under scrutiny. AP
Prince Edward, who is Queen Elizabeth II's youngest son, has leased the 51-acre Bagshot Park, in Surrey, from the Crown Estate for the past 25 years.
He's lived there with his wife Sophie, the Duchess of Edinburgh.
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.
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.
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Queen Elizabeth II's youngest son has leased the 51-acre home from the Crown Estate for 25 years. Getty
The Times forced the disclosure of documents held by the Crown Estate, leading to the revelations.
His lease differs to that of Andrew's because there are no conditions on the further sale of Edward's lease, except the new tenant must be able to afford the property's maintenance, leaving open the possibility Edward could one day profit from its sale.
In Andrew's case, the conditions on his lease of Royal Lodge made it possible for him to pass it on to only his ex-wife Sarah Ferguson or their children, Princess Beatrice and Princess Eugenie.
He is now in the process of moving out of the property to live in a home on the King's private Sandringham estate, expected to happen in the New Year.
The former Duke and Duchess of York paid a peppercorn rent on Royal Lodge at Windsor. AP
According to The Times, the premium paid for the 2007 lease extension and as a down payment on future rent was "market tested" by the Crown Estate before the price was agreed.
He originally leased the property for 50 years for £5,000 (approx. $10,000) a year in March 1998. But that increased to £90,000 a year (approx. $180,000) described as 'market value' by the National Audit Office, after Edward paid £1.36 million (approx. $2.6m) to help renovate the property.
The Crown Estate covering the rest of the £3 million refurbishment costs.
The Crown Estate received two alternative offers for Bagshot Park – one for the creation of a conference centre and another to convert the property into a hotel – after the Ministry of Defence handed back its lease on the site in 1996, the publication reports.
News of Prince Edward's peppercorn rent has been labelled as "obscene" by royal author and former Liberal Democrat minister Norman Baker.
He said told The Times: "It is obscene not just that Edward and Sophie have been given a 120-room mansion to live in, but even more so that they have to pay a mere peppercorn rent, less than a struggling couple would pay to rent a pokey flat in Romford."
Prince Edward is one of the senior working royals and was given the Duke of Edinburgh title by the King. Getty
Anti-monarchy group Republic said: "There is absolutely no reason why Edward should be supplied with subsidised housing. These properties are state-owned. They should not be in the gift of the monarch for their family. Most people have no idea who Edward is or what he does. Why is he getting any state subsidy?"
Prince Edward is 15th-in-line to the British throne and is one of the senior working royals.
He was granted the title Duke of Edinburgh by his brother King Charles after the death of their father, Prince Philip.
The Duke and Duchess of Edinburgh are working royals and carry out many engagements on behalf of the King. Getty
Bagshot Park is a grade II listed mansion and was built between 1875 and 1879 on orders from Queen Victoria. It was originally used as a home for her third son, Prince Arthur, Duke of Connaught and Strathearn.
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