Prince Harry and Meghan avoided paying $1 million in rent on Frogmore Cottage under deal with palace

The Duke and Duchess of Sussex avoided paying more than $1 million in rent on their Frogmore Cottage property under a deal struck with Buckingham Palace, it has been claimed.

The agreement was allegedly made after Prince Harry and Meghan paid back the $4 million (£2.4 million) in taxpay-funded money used to renovate the Windsor property.

That lump-sum payment cancelled out a prior agreement that the couple pay a commercial rate for the home, the Mail on Sunday reports.

READ MORE: Harry told to give month's notice before returning to UK

Harry and Meghan were able to get out of their rental obligations due to the increased value brought on by the renovations, seen as 'rent in lieu', the publication claims.

The estimated rent otherwise would have been between $272,000 - $417,000 (£150,000 and £230,000) a year to rent.

In the three years they renovated Frogmore, the Sussexes may have saved up to $1.2 million (£690,000).

In a statement, a palace spokesperson said: "The Duke and Duchess of Sussex made a contribution of £2.4 million to the Sovereign Grant which covered the refurbishment of Frogmore Cottage.

"They have fulfilled their financial obligations in relation to the property.

"In line with usual practice for the Sovereign Grant report, the accounting treatment was scrutinised and signed off by the National Audit Office and the Treasury.

"As with any such agreement between landlord and tenant, further details regarding the Sussexes' tenancy arrangements would be a private matter."

The Duke and Duchess of Sussex have since ended their rental contract with Frogmore after being told to vacate the property by King Charles.

In January, His Majesty reportedly told the couple they would no longer able to use the home as their UK base.

They were gifted Frogmore Cottage as a wedding gift by the late Queen Elizabeth II in 2018 and were able to keep it even when they stepped back as working royals and moved to the US in 2020.

Prince Andrew was rumoured to have been offered the five-bedroom mansion under an order to move out of the Royal Lodge, a 30-bedroom home he's lived at since 2003.

If Prince Harry and Meghan chose to return to the UK for the coronation in May, they are expected to stay at Frogmore as the King's eviction notice reportedly will start after the historic event.