A report released by the UK's National Audit Office (NAO) has provided the most comprehensive review to date of property arrangements involving members of the British royal family, revealing details of lease agreements, rental structures and occupancy arrangements across several royal residences. 
The review was undertaken after the Public Accounts Committee announced an inquiry into royal property arrangements in the past year, following questions surrounding the lease held by King Charles' younger brother, Andrew Mountbatten-Windsor, for Royal Lodge on the Windsor estate. 
The report found that Mountbatten-Windsor held leases for 10 properties, three of which had been sublet. It also revealed that King Charles is paying the rents for the palace residences occupied by Mountbatten-Windsor's daughters, Princesses Beatrice and Eugenie, through the Privy Purse, which consists of the sovereign's private funds. 
The NAO examined agreements between members of the royal family, the Royal Household and the Crown Estate. While the report detailed the arrangements in place, it did not assess whether they represented value for money for taxpayers. 
According to the findings, a deal agreed in 2003 granted Mountbatten-Windsor a 75-year lease on Royal Lodge in exchange for an upfront payment of GBP 1 million (USD 1.3 million) and a commitment to carry out GBP 7.5 million worth of renovations. The required works were completed, after which he paid only a nominal "peppercorn" rent for the mansion and the eight cottages located across its 40-hectare estate. 
The report stated that three of those cottages had been sublet, with rental income retained by Mountbatten-Windsor. The properties remained occupied until recently, when they became vacant. Neither the NAO nor the Crown Estate had records of the rental income generated from those arrangements. 
In addition to Royal Lodge, Mountbatten-Windsor also leased Sunninghill Park in Windsor for use by a member of his staff, paying GBP 12,922 annually. The lease is scheduled to expire in July next year. 
A spokesperson for the Crown Estate said lease agreements involving members of the royal family were based on independent professional advice and open-market valuations. 
The report further showed that seven official residences at Kensington Palace and St James's Palace are provided rent-free to working royals who undertake official duties on behalf of the monarchy. These include Prince William and Princess Anne, who occupy such residences as part of long-standing arrangements linked to their public roles. 
For non-working members of the royal family, different rental terms apply. The NAO found that Princesses Beatrice and Eugenie, along with the Duke of Kent, were charged rents equivalent to 60% of open-market value because occupancy is restricted by security requirements and the unique nature of the residences. 
However, the watchdog noted that the rents paid did not always align with the 60% valuation benchmark. It also found that the king was covering these rental payments through his private finances. 
Responding to the findings, Buckingham Palace said residences were allocated and occupied according to their location, intended purpose and suitability for individual tenants. 
The report also provided details of Prince William and Catherine's housing arrangements. It found that the couple pay GBP 307,200 annually in rent to the Crown Estate for Forest Lodge, their current residence, as well as GBP 19,800 per year for a staff property. Before they moved in, the Crown Estate spent GBP 400,000 on repairs, while the couple covered the cost of internal refurbishment works. 
Elsewhere, the report noted that Prince Edward entered into a 150-year lease for Bagshot Park in 2007 after paying a GBP 5 million premium and spending GBP 1.38 million on renovations. Under the arrangement, he pays a nominal rent and is also permitted to sublet properties within the estate. 
While extensive in scope, the review did not cover the Duchies of Lancaster and Cornwall, which generate income directly for King Charles and Prince William. It also excluded privately owned royal estates such as Sandringham in eastern England and Balmoral Castle in Scotland. 
Source Reuters