The King has stepped in to cover the costs after Andrew Mountbatten-Windsor left Royal Lodge requiring £1.8million in repairs.
The former Duke of York was evicted from the deteriorating Windsor mansion earlier this year amid renewed scrutiny of his links to Jeffrey Epstein.
After living at the 30-room property rent-free for two decades, Andrew left it requiring £1.8million of work to address ‘dilapidations’ before it could be rented out again, it has emerged.
King Charles is understood to have ‘loaned’ Andrew the money from his private income, ensuring taxpayers do not have to meet the cost.
Andrew also benefited from a £302,000 reduction in the repair bill after assessors concluded he was entitled to compensation because his lease had ended early.
With financial help from Charles, the King’s brother has now settled the repair costs. The work is believed to have included substantial repairs to an outbuilding, along with restoration of the main house and garden.
Andrew took over Royal Lodge in 2003 and spent £7.5million on refurbishments. He subsequently lived at the property for 20 years while paying only a ‘peppercorn’ rent.
Following his departure, the Crown Estate has disclosed the scale of the bill required to put the mansion back into condition.
The Crown Estate said: ‘The former tenant has fully vacated and paid £1.8million for dilapidations. This sum was informed and reviewed by independent advisors.
‘The amount of compensation the tenant is entitled to for surrendering the lease in October 2026 is circa £302,000.
‘Therefore, the overall net amount received by The Crown Estate is £1.5million.’
Cracks and mould have appeared on the exterior walls of Prince Andrew’s mansion as the property has fallen into disrepair
Andrew and Sarah Ferguson continued to live together at Windsor for years after their divorce. Following Andrew’s eviction earlier this year, assessors found Royal Lodge required £1.8million in repairs
The poor condition of the mansion and the repairs it requires are clearly visible from outside
The King is understood to have paid the full £1.5million owed to the Crown Estate for the work required at Royal Lodge.
Buckingham Palace has previously said Charles makes ‘provision’ for his brother, who would otherwise place a financial burden on taxpayers.
When asked when Andrew would be expected to repay the money, palace sources described it as ‘a private matter’ between His Majesty and Mr Mountbatten-Windsor.
The loan was disclosed just one day after it emerged that Andrew had been funding a legal challenge over the police raid on Royal Lodge earlier this year.
Royal sources insisted the timing was coincidental and that the two matters were unrelated. The surrender of the Royal Lodge lease had to be completed by October 30. At the High Court on Thursday, it emerged that the former prince had launched a judicial review against Thames Valley Police and the Old Bailey judge who approved search warrants for his homes in February.
The King barred his brother from using his money to fund the judicial review. Asked whether Charles had provided the repair loan to free up Andrew’s funds for the legal case, palace sources stressed that none of the monarch’s money could be used for the court battle.
The disgraced former prince lived in the grandiose home set in 98 pristine acres of Windsor Great Park rent-free since 2003 until January or February this year.
He paid just ‘one peppercorn (if demanded) per annum’ – according to his lease.
Royal Lodge, the lavish Windsor mansion Andrew shared with his ex-wife Sarah Ferguson
Extracts from Prince Andrew’s lease with the Crown Estate showing his ‘one peppercorn’ annual rent
The Crown Estate is an independent commercial body whose profits go to the Treasury but is obliged to get the best value for the public.
It said the Royal Lodge lease has been handed back more than 50 years early, ‘which means additional value can be generated much sooner than expected’.
The Crown Estate said in a statement: ‘We can confirm the lease for Royal Lodge with former tenant Andrew Mountbatten-Windsor has been surrendered.
‘The lease has been handed back more than 50 years early – which means additional value can be generated much sooner than expected.
‘As per the terms of his lease, the tenant was entitled to receive compensation if the lease was surrendered within the first 25 years. This term was included in the lease to reflect the significant (c.£7.5m) refurbishments made by the tenant at the start of the lease. The amount of compensation the tenant is entitled to for surrendering the lease in October 2026 is c.£302k.’
A spokesman said: ‘The lease for Royal Lodge has ended and our focus now is firmly on its future use and the opportunities to generate additional financial value for the nation from its early return.’
It has a statutory duty to maintain the character of the Windsor Estate as a Royal park and forest.
It said the lodge would now be marketed for its proposed future use ‘by two nationally recognised agents’.