Andrew Mountbatten-Windsor's lease for his 30-room residence, Royal Lodge, has been picked apart in recent weeks, with his 'peppercorn rent' arrangement causing outrage among members of the public. We delve into the contracts between the Crown Estate and royal family members that give them special privileges like cut-price rent. Discover why Prince William pays 'market rent' while Prince Edward doesn't pay anything at the moment…
What is 'peppercorn rent'?
The Gov UK website explains: "A peppercorn rent is a periodic token consideration paid by the tenant to the landlord for a grant of an interest in land. It can occur, for example, where a tenant has paid a large premium." Basically, it is essentially a symbol, a nominal or token amount that can be demanded by the landlord if required.
Why do different royals get different arrangements?
Bryan Johnston, property litigation partner at law firm Dentons, spoke to me about royal leases and explained why some royals seemingly get a bargain deal while others have to pay the going rate. "Royal leases vary because each one is negotiated individually. For instance, when Andrew Mountbatten-Windsor took on the lease of Royal Lodge, he was required to fund major works to the house. This investment formed part of the value he provided in exchange for the lease."
Andrew is set to leave the property in 2026
Andrew Mountbatten Windsor's home, Royal Lodge
Andrew's lease was obtained by The Times in October, and the contents revealed his 'peppercorn rent' arrangements. This means that for decades, he has paid no monthly or yearly fee, however; he did pay a large lump sum upfront and footed the bill for renovations. The then-Prince paid £1 million for the lease and then he forked out a further £7.5 million for extensive refurbishments completed in 2005.
It has been reported that Andrew has now surrendered the lease, and he is set to move out in 2026. HELLO! understands that the Sandringham estate will be where he moves, but there has been no confirmation about the exact property.
© Getty ImagesEdward keeps his home very private
Prince Edward's home, Bagshot Park
After the Andrew scandal, royal leases have been under the spotlight, including Prince Edward's lease for his Surrey home, Bagshot Park. Similar to Andrew, Edward has a 'peppercorn rent' set-up in the contract. Edward initially leased the property for 50 years for £5,000 a year in March 1998. The sum later went up to £90,000 a year, but when the lease was renewed in 2007, the conditions changed. The Times explained that Edward’s lease extension, signed with his company, Eclipse Nominees Limited, included "£5 million upfront for a lease of 150 years" and now has a "peppercorn rent".
© Getty ImagesThe Wales family have just moved into this gorgeous home
Prince William's home, Forest Lodge
Unlike the potentially dubious arrangements of Andrew and Edward's homes, the Prince and Princess of Wales, who have just moved into their forever home in Windsor, have an altogether different contract. The royal couple are paying "market rent" for the eight-bed mansion, staying well clear of the "peppercorn rent" option.
The Crown Estate has clarified the agreement, for the purposes of transparency. "The lease for the Property was concluded on a 20-year Common Law Tenancy at an open market rent subject to standard Landlord & Tenant repairing obligations. The rent was assessed by Savills and Hamptons acting on behalf of the Crown Estate. Knight Frank acted for TRH’s The Prince and Princess of Wales," the statement from the Crown Estate read.
© PA Images via Getty ImagesThe Duchy of Cornwall owns Highgrove House
King Charles' home, Highgrove House
Believe it or not, even His Majesty King Charles himself rents his country home! But, he doesn't rent it from the Crown Estate as Highgrove House in Gloucestershire is a property under the Duchy of Cornwall, which technically makes Prince William his own father's landlord. According to the MailOnline, the fee is £700,000 a year paid to the Duchy. The Duchy of Cornwall has an extensive portfolio of properties across the country, and it makes William one of the UK's biggest private landowners.
© ShutterstockThis Richmond property is where Princess Alexandra lives
Princess Alexandra's home, Thatched House Lodge
The late Queen Elizabeth II's cousin, Princess Alexandra, stays at Thatched House Lodge in Richmond, which boasts six bedrooms and four acres of land, as well as a separate summer house and gardener's cottage. Oh, and not forgetting the on-site stables!
The Times reports Alexandra paid £3,000 in 1971 for a 70-year lease taken out on the property, and now has a contract that states she is to pay £2,200 a year to rent it – an absolute bargain for the central location!
St James's Palace has bases for multiple family members
Royal second homes
Princess Anne and Princess Beatrice have places to stay inside St James's Palace, and Princess Eugenie has access to Ivy Cottage on the grounds of Kensington Palace. All of these are their second homes, as they already have larger main residences, but each provides a base in London. While Princess Anne is a working royal, and some would argue that she deserves the property as payment for her duties, the likes of Eugenie and Beatrice are non-working royals and have their own jobs.
