The Duke and Duchess of Sussex have agreed not to pay rent for their Windsor home after paying back the money used for its renovation.
Prince Harry and his wife Meghan lived in the five-bedroom Frogmore Cottage when they were still royals, but when they retired from official duties and moved to California, they agreed to repay the £2.4 million the taxpayers had spent on renovating the mansion.
Although it has been reported that they will pay a “commercial rate” for the property – estimated to cost between £150,000 and £230,000 a year – Buckingham Palace have now confirmed that the lump sum payment they have refunded has erased their rental obligations, the money being considered as “rent in lieu”.
A spokesperson told the Mail on Sunday newspaper: “The Duke and Duchess of Sussex have made a £2.4 million contribution to the Sovereign Grant, which covered the refurbishment of Frogmore Cottage. They have fulfilled their obligations financial with respect to ownership.
“In line with normal practice for the Sovereign Grant report, the accounting treatment has been reviewed and approved by the National Audit Office and the Treasury.
“As with any such agreement between landlord and tenant, further details regarding the Sussexes’ tenancy arrangements would be a private matter.”
Harry and Meghan – who together have children Prince Archie, three, and Princess Lilibet, 21 months – moved into the property in spring 2019 after major works transformed it from a number of properties separated into a large family home, but when they stepped back from royal duties the following year with plans to be “financially independent”, Buckingham Palace released a statement saying the couple wanted to “reimburse expenses related to the grant Sovereign for the renovation of Frogmore Cottage, which will remain their family home in the UK” and later said he would continue to pay a “commercial rate” for the rent on the property.
Accounts show they paid five months rent before handing over the £2.4million lump sum in September to cover renovation costs.
Official Sovereign Grant reports – which detail public spending on the Royal Family – show the money was split into three headings and recorded on two sets of accounts.
The sum is listed as both “rental income” and “recharges for functions and other income” in the figures for 2020/21, and the following year the last part of the money is listed as “deferred income under the current liabilities”.
Former cabinet minister and privy adviser Norman Baker criticized the deal.
He said “It is outrageous that Harry and Meghan can live in a huge house on these terms while ordinary people struggle to put food on the table.
