The four urgent questions Andrew must answer over subletting royal properties

Andrew Mountbatten-Windsor is facing growing calls to pay back the rental money gained on three cottages he sublet at his Royal Lodge estate in Windsor.

The former Duke of York charged staff to live in the cottages while paying only a “peppercorn” rent for the 30-room mansion he lived in for two decades.

The arrangement is “odd” and “indefensible”, said MPs and peers. They called on the former prince to explain his income as a landlord and return the money to the Crown Estate, which returns its profits to the Treasury for the benefit of taxpayers.

They also demanded more transparency from both the Crown Estate and Royal Family on what was described as “secretive deals and cosy arrangements” – arguing that vital questions remained unanswered.

A National Audit Office (NAO) report revealed that Mountbatten-Windsor leased eight cottages at the Royal Lodge from the Crown Estate, subletting three of them.

Closer inspection of the lease shows that the three “Main Gate” cottages at the entrance to the sprawling, 40-acre estate in Great Windsor Park were allowed to be sublet.

It also emerged that he had a lease on another property – a two-bedroom cottage known as East Lodge at Sunninghill Park – which was used for Andrew’s staff.

Amid outrage over the rental arrangements, MPs said Andrew must not be allowed the compensation of more than £300,000 that he may still be owed for quitting Royal Lodge.

How much did Andrew make in Royal Lodge rent?

Labour peer Margaret Hodge said it was “shocking” that it has not been made clear how much money Mountbatten-Windsor received by subletting the three cottages at the Royal Lodge.

It is not known how much Mountbatten-Windsor charged staff in rent. One property expert told The i Paper that such exclusive properties may have potentially generated a total of £180,000 a year.

Royal sources suggested that Andrew’s subletting did not generate a net profit, and that the rent was set to cover maintenance and running costs for staff living there.

But no figures, such as repair and costs versus rental income at the cottages, or copies of the rental agreements, have been made public to verify how much he received.

“It seems to me very odd,” Baroness Hodge told The i Paper. “He should explain how much rent he received. These were not his properties – they belong to us, through the Crown Estate. The Crown Estate ultimately belongs to the taxpayer; it’s taxpayers’ money.”

The Crown Estate is classed as a public corporation. It is set up to generate revenue for the UK Government and is overseen by the Treasury.

Fellow Labour peer Lord George Foulkes – who has pushed for more transparency over royal finances – said Mountbatten-Windsor should “pay it back” if there were any rental profits.

“I think people are fed up that the Crown Estate appears to be being pilfered with cosy arrangements, and I think this rental income is an example of that.”

Rachael Maskell, Labour MP for York, also said Mountbatten-Windsor should return rental income to the Crown Estate “if he has made a gain on the back of it”.

“Who were the staff living in these properties? And if they were living at a reduced rental, then how is that fair or equitable in terms of value for the Crown Estate?”

Lisa Smart MP, the Liberal Democrats’ Cabinet Office spokesperson, said the subletting was “indefensible”, adding: “Taxpayers will rightly ask how this arrangement by the Crown Estate was ever allowed.”

What were rental arrangements at East Lodge in Berkshire?

Mountbatten-Windsor took another Crown Estate lease on a two-bedroom cottage on the Sunninghill estate in Berkshire in 1998. It was known as East Lodge, and referred to as “staff Lodge 2” in the NAO report

The annual charge to Andrew had risen to £12,922 annually by time he gave it up earlier this year. The watchdog also found that one of Mountbatten-Windsor’s employees was the resident there.

The NAO did not find any subletting arrangement in the terms of the lease. It is not clear whether the Mountbatten-Windsor charged any rent.

“I would like to know more [about rental arrangements at East Lodge],” said Baroness Hodge. “We need more clarity on what arrangements are for staff, because it’s a muddle.”

Andrew Lownie, author of Entitled: The Rise and Fall of the House of York, said it had taken far too long to get incomplete information about rental arrangements.

“We need to know what the arrangements were [at East Lodge],” he said. “The questions are for the Crown Estate, which is supposed to administer these places on behalf of the public. There have been these cosy relationships.”

Also demanding more transparency from Buckingham Palace, Lownie added: “The Royal Family can’t operate with secretive deals and cosy arrangements any longer. They need to be more open and justify everything.”

Will Andrew receive compensation for quitting Royal Lodge?

Mountbatten-Windsor could still receive a compensation payment he is due for giving up his Royal Lodge lease early – which could amount to £301,967.

The Royal Lodge lease was agreed in 2003 on the basis that he would spend £7.5m renovating the property, which the Crown Estate confirmed he had paid. This reduced his upfront premium payment for the lease to £1m, alongside a “peppercorn” rent.

However, the Crown Estate previously suggested in a letter to MPs on the Public Accounts Committee that he is unlikely to receive any compensation money because the building is in need of significant repairs.

“I would imagine the Crown Office will be keen not to give him any compensation, because that would look terrible,” said Norman Baker, former Liberal Democrat minister and author of Royal Mint: National Debt.

“It is worrying that he [Andrew] could get this compensation for the Royal Lodge. It would be outrageous if he got that sum,” said Baroness Hodge.

Mountbatten-Windsor was arrested by Thames Valley Police in February over allegations he passed sensitive information to paedophile Jeffrey Epstein while serving as UK trade envoy. He was released under investigation and denied wrongdoing.

Who has to pay rent at Andrew’s new Marsh Farm home?

Mountbatten-Windsor downsized by moving to Marsh Farm on the Royal Family’s Sandringham Estate in April.

A large, white mobile home was spotted on the grounds in Norfolk – reportedly for his security staff since there is not enough room inside the five-bedroom home.

The King is helping his brother live at Marsh Farm from his own private income, rather than through the taxpayer-funded Sovereign Grant, it is understood.

But it is not clear exactly how much the royal household is covering, and what the rental arrangements are for Andrew’s staff at the cottage. A cook, a general aide and security staff are reported to remain with him.

There is nothing in the NAO report on arrangements at Marsh Farm. The Sandringham Estate is the King’s private property, and is not owned by the Crown Estate.

Baker said the motor home spotted at Marsh Farm “raises questions” about who pays for staff and their accommodation. “The Royal Family need to be transparent about how things are getting paid for.”

“We don’t know what staff Andrew has now, how much security he gets and how exactly that is getting paid for,” said Dai Davies, who was head of Scotland Yard’s Royal Protection Command between 1994 and 1998.

“We need a thorough look at this man’s life,” Davies added. “More transparency from the Royal Family would be good.”

A Buckingham Palace spokesperson said arrangements for the royal household’s properties “vary based on a number of factors to ensure residences are filled appropriately, depending on their location, tenants and purpose”.

A spokesperson for the Crown Estate, said Royal Family members’ leases “were agreed in line with independent, professional advice and open market valuations”.

Mountbatten-Windsor’s office was contacted for comment.