The winners and losers in the great Royal property merry-go-round

The Duke of York could get a £1.5 million windfall if he leaves Royal Lodge this year.

A Government document seen by The Mail on Sunday reveals that Prince Andrew would be entitled to a rebate from the money he spent refurbishing the 30-room Windsor property when he first moved in two decades ago.

The Duke of York – who was pictured on the Windsor estate yesterday, smiling broadly at a jogger from behind the wheel of his Range Rover– acquired the lease in August 2003, a year after the death of the Queen Mother who had lived there

He then spent more than £7.5 million on renovations. Under the terms of the lease, he is entitled to a rebate if he moves out within 25 years. It is calculated on a sliding scale, so if he leaves this year – 20 years into the agreement – he could get back £1.5 million.

The document states: ‘Should the Duke wish to terminate the lease, the property would then revert to the Crown Estate.

Prince Andrew, pictured driving his hybrid Range Rover on The Long Walk in the Windsor estate yesterday, could receive a £1.5m rebate in cash he spent renovating his home 

‘The Estate may then be required to pay him compensation in respect of the refurbishment costs incurred. The maximum compensation of just under £7 million is subject to annual reductions over the first 25 years. At the end of that period, there is nil compensation payable.’

The details of the lease were published in a parliamentary document in 2005 after Labour MP Ian Davidson requested the information.

The document explains how Andrew approached the Crown Estate about acquiring the leasehold to the sprawling estate – which includes a swimming pool and several cottages in the grounds for staff – after the Queen Mother’s death. The Royal Family instead suggested the commercial leasing agreement.

The Duke of York was photograph out riding a horse. Details of his lease at the Royal Lodge were made public in 2005 after Labour MP Ian Davison requested the information 

However the property is said to be too expensive to protect now, since the Duke lost his state-funded police detail on being forced to step back from Royal duties in 2019. He now relies on bodyguards paid for by the King.

King Charles, however, is said to be exasperated that Andrew insists on wanting to stay at Royal Lodge, which costs an estimated £3 million a year to guard.

Plans are now under way for Andrew to be offered Frogmore Cottage when the Duke and Duchess of Sussex move out.

A source said: ‘Royal Lodge is just not suitable for the Duke any more. He’s a single man living with his ex-wife who has a property of her own in London.

‘The scale of Royal Lodge means it requires two teams [of bodyguards] – a mobile team and a static team – and that is a considerable expense. The King is happy to provide security for his brother but a better use of resources would be to house him at Frogmore Cottage.’