Andrew Mountbatten-Windsor is unlikely to receive a £301,967 compensation payment linked to the surrender of his Royal Lodge lease, GB News understands, as the cost of repairing the property is expected to exceed any payout.
The National Audit Office had suggested in its report that Mr Mountbatten-Windsor could be entitled to compensation following his decision to request early surrender of the Windsor estate lease, subject to final dilapidation assessments.
However, sources close to the Crown Estate told GB News that while a full inspection will take place once the property is fully vacated, an initial assessment indicates that repair and dilapidation costs will exceed any compensation payable.
A full valuation of the work required at the 30-room Royal Lodge property has not yet been completed, as a formal inspection will only take place once the lease has fully ended.
Crown Estate insiders added that plans for the future of the property will be considered after the notice period concludes.
Under the terms of the lease, Mr Mountbatten-Windsor gave 12 months’ notice to surrender Royal Lodge on October 30, 2025, meaning the estate is due to return to Crown Estate control in October 2026.
The NAO report also confirmed that three cottages on the Royal Lodge estate were previously sublet, with income generated under arrangements linked to the former occupant.
The Crown Estate has provided no further detail beyond the report, and said certain subletting arrangements would not have required its direct involvement, particularly where tenants were employed staff.
Andrew Mountbatten-Windsor is set to miss out on a £301,000 Royal Lodge payout as repair costs for the property surge, GB News understands
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The cottages have been vacant since April 2026, and any future use of the properties will be considered once the surrender process is complete.
The report further notes that discussions are ongoing between The Crown Estate and the Royal Household about the possible return of additional properties, although officials declined to provide details on which sites may be involved.
A separate request relating to the surrender of Staff Lodge remains under consideration, with its lease due to expire in July 2027.
The Crown Estate said it would be inappropriate to comment further on ongoing discussions regarding property returns or potential changes to its residential portfolio.
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An aerial view of Royal Lodge in Windsor | REUTERS
Responding to the NAO report more broadly, Buckingham Palace said it was “grateful” for the review, adding that it was in line with the Royal Household’s commitment to transparency.
A Palace spokesman said: “We hope that the findings will help correct, clarify or contextualise a number of points regarding Royal properties.”
The statement added that arrangements for properties managed by the Royal Household vary depending on “a number of factors” including location, tenants and purpose, in order to ensure residences are allocated appropriately.
Andrew had previously lived at Royal Lodge since 2003 | REUTERS
Meanwhile, a spokeswoman for The Crown Estate said: “The Crown Estate welcomes the National Audit Office’s review which confirms its leases with members of the Royal Family were agreed in line with independent, professional advice and open market valuations.
“We look forward to discussing the report further with the Public Accounts Committee in due course.”