Royal sources report a mood shift in the Palace in recent days, including a renewed determination to force Andrew out and a recognition that his daughters, Princesses Beatrice and Eugenie, need to be “looked after” and reassured that their own homes in St James’s Palace and Kensington Palace respectively will not be affected.
There had been hopes that the Prince’s living arrangements could be sorted out quickly to draw a line under the constant stream of negative publicity about his indiscretions – with rumours swirling on Thursday that he was hours away from moving – but finding a solution that works for all parties is proving difficult.
The King had hoped that by forcing his brother to drop his Duke of York title and other honours, the furore over his relationship with the paedophile financier Jeffrey Epstein and with suspected Chinese spies would die down. However, it has failed to do so.
Buckingham Palace will be keen to avoid a long, drawn-out parliamentary inquiry into any matter that touches on royal finances, which has given added urgency to the matter of resolving Andrew’s accommodation.
On the question of where the Prince will live if he leaves Royal Lodge, the most trouble-free solution would be to house him in one of the King’s privately-owned properties, most likely Sandringham or Balmoral, where he could have the use of one of the many self-contained homes on either estate. That would enable him to live rent-free without any cost to the public purse.
But Andrew is not keen to be exiled to Norfolk or Scotland and wants to remain in London or Windsor, close to his daughters.
Moving him to a smaller property on the Windsor estate would minimise the public’s outrage at him living a life of taxpayer-subsidised luxury, but he would have to pay rent which he might not be able to afford.
Moving him into Windsor Castle or Buckingham Palace would also risk accusations that he was being rewarded rather than punished, and there would be a cost to the public purse of accommodating him in buildings that belong to the nation.
Meanwhile, there is also the question of what would happen to Royal Lodge, as its proximity to Windsor Castle makes it difficult, if not impossible, to rent out privately.
Under the terms of the lease, which he signed in 2003, the Prince is entitled to a refund of some of the money he paid upfront, which included a £1m payment ($2.4m) for the 75-year lease and more than £7.5m ($17.3m) in refurbishment costs. If he leaves before next June, he will be in line for a refund of £557,596 ($1.2m), which reduces by £185,865 ($430,274) each year until 2028, when he will be owed nothing.
The Prince has argued all along that it makes no sense for him to walk away from a property which cost him around £10m ($23.1m) before he even moved in, and which has cost millions more in upkeep since then, regardless of the rent being waived.
That means he is likely to demand considerably more than the money he is legally owed, which might have to be funded by the King, as the Crown Estate answers to the Treasury, which is unlikely to allow public money to be used.
The living arrangements of Andrew’s ex-wife, Sarah Ferguson, who has her own rooms in Royal Lodge, are an added complication. It is unclear whether she would move with the Prince or find somewhere to live on her own.
The Prince of Wales is understood to have been keen to stay out of the negotiations, as he remains on good terms with his cousins Beatrice and Eugenie, but has made it clear that he wants the matter resolved.
In recent days, Prince William and the King have made it clear through their representatives that Beatrice and Eugenie are blameless in the furore and that their homes in the royal palaces are safe.
In a further blow for Prince Andrew, his royal banner has been removed from St George’s Chapel at Windsor Castle. It was linked to his membership of the Order of the Garter, which he gave up last week.
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