Andrew Mountbatten-Windsor has been granted £302,000 in compensation after his lease on his former Royal Lodge home in Windsor was officially surrendered, a Crown Estate spokesperson said.
The former Duke of York left the Royal Lodge and moved onto the Sandringham Estate in Norfolk in February this year.
As he handed back the keys, Mr Mountbatten-Windsor paid £1.8m for dilapidations, the sum of which was informed and reviewed by independent advisers. This term was included in the lease to reflect the significant £7.5m refurbishments made by the tenant at the start of the lease.
The outbuilding needs significant repairs and the main house and garden are understood to need restoration, as reported by The Times.
A Crown Estate spokesperson said Mr Mountbatten-Windsor was entitled to compensation because, as per the terms of his lease, he surrendered it within the first 25 years.
The Crown Estate received a net amount of £1.5m, taking into account the £302,000 compensation to the former Duke of York.
A spokesperson for The Crown Estate 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.”
The Crown Estate is understood to be determining the future use of the property as part of the Windsor Estate. When the review is complete, the property will be marketed for its proposed future use by two nationally recognised agents.
Mr Mountbatten-Windsor’s tenancy at the Royal Lodge ended after it was reported he had lived there on a peppercorn rent since 2003, although he paid £1m for the lease and a further £7.5m for refurbishments.
In June, a National Audit Office investigation revealed that the late Queen’s second son received an undisclosed private income from subletting three cottages on the Royal Lodge estate while paying a peppercorn rent for more than two decades.
The former Duke of York’s £302,000 payout – and £1.8m dilapidation fee – is the latest issue, as he has been locked in a legal battle with Thames Valley Police.
A High Court judge agreed to quash search warrants issued by the Central Criminal Court which allowed officers to raid the Royal Lodge and his home on the Sandringham Estate.
Now, both sides must engage in another court battle over whether the force can use the material seized from Mr Mountbatten Windsor’s premises, with a hearing in the case to be held in private in 2027.
Thames Valley Police’s investigation into misconduct in public office remains ongoing. Mr Mountbatten-Windsor has strenuously denied any wrongdoing.
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