MPs question value for money of Prince Andrew's Royal Lodge lease

Prince Andrew has lived at Royal Lodge since 2004 and has a 75-year lease

Parliament's spending watchdog has raised concerns over whether Prince Andrew's lease arrangements are "achieving the best value for money", amid increased scrutiny over the cost of his accommodation at the Windsor mansion.

The Public Accounts Committee (PAC) asked the Crown Estate and Treasury to explain the rationale behind the lease on the 30-room Royal Lodge by 28 November.

Prince Andrew took a 75-year lease on the property in 2003 and paid a large amount up front, including for renovations, in effect, so there would be no rent liability.

There has been increased focus on the prince over his links with the late sex offender Jeffrey Epstein. The prince has always denied any wrongdoing.

When he took on the lease Prince Andrew had to pay £5m for renovations, £2.5m towards rent in advance, an extra £1m premium, and then in practice an extra £2.5m for renovations, according to the National Audit Office and Crown Estate.

In Wednesday's letter to the Crown Estate and the Treasury, PAC chair Sir Geoffrey Clifton-Brown wrote: "There is considerable and understandable public interest in the spending of public money in relation to Prince Andrew, which in part stems from the fact that he is no longer a working royal and from serious and disturbing allegations made against him."

In a series of questions, Sir Geoffrey asked whether the cost of any works on the property had been funded by the taxpayer, and what the Crown Estate's plan was to ensure value for money in any future agreements with Prince Andrew.

"We are therefore concerned as to whether the lease arrangements for Royal Lodge are, in light of recent developments and changes in the responsibilities of Prince Andrew, achieving the best value for money," the letter said.

It added that it was a concern that the terms of the lease, including those related to maintenance, were being enforced to maintain the "nationally important royal residence".

A Treasury spokesperson said: "The Crown Estate is an organisation independent of both the government and the monarch.

"We will respond to Sir Geoffrey Clifton-Brown in due course."

The Crown Estate has not publicly commented on the PAC letter.

Prince Andrew - who gave up titles including the Duke of York earlier this month - has lived at Royal Lodge since 2004, after signing the 75-year lease deal the previous year with the Crown Estate, an independent property company which is owned by the monarch.

The Grade II-listed Royal Lodge boasts a gardener's cottage, a Chapel Lodge, six-bedroom cottage and security accommodation.

Prince Andrew paid significant amounts up front on his lease deal for Royal Lodge

Last week, more details emerged about how he could afford his sprawling mansion, after the lease agreement had been revealed.

The arrangement means he has only ever paid a token - or peppercorn - annual rent on Royal Lodge, and even that might not be required under his deal with the Crown Estate, a lease document seen by BBC News confirms.

In effect, those payments - which totalled more than £8m and were detailed in a National Audit Office report - meant he was buying himself out of future rent obligations for the duration of the lease, based on paying in advance a notional rent of £260,000 per year.

Last week, Liberal Democrat leader Sir Ed Davey called on the PAC to launch an inquiry and ask Prince Andrew to give evidence about his lease of Royal Lodge.

While there is nothing preventing a House of Commons committee from inviting Prince Andrew to do this, an appearance in such a setting by a member of the Royal Family would be unprecedented. It is unclear whether the committee would be able to compel him to do so.

The government has so far refused to give MPs time to debate Prince Andrew's titles or taxpayer-funded home.

There have been reports that Prince Andrew is willing to leave Royal Lodge but wants other royal properties for himself and his ex-wife Sarah Ferguson.

Buckingham Palace has not commented on whether Prince Andrew might move out of his home - or where he might go.

In a separate development, it emerged this week that Prince Andrew hosted Jeffrey Epstein at Royal Lodge as part of his daughter Beatrice's birthday celebrations in 2006 - two months after a US arrest warrant had been issued for Epstein for the sexual assault of a minor. Andrew did not respond to a request for comment.