The Crown Estate confirms the surrender of the lease for Royal Lodge

The Crown Estate can confirm the lease for Royal Lodge with former tenant Andrew Mountbatten-Windsor has been surrendered. 

The Crown Estate issued a statement: "The lease for Royal Lodge has ended and our focus now is firmly on its future use and the opportunities to generate additional financial value for the nation from its early return."

For further information:

• The lease has been handed back more than 50 years early – which means additional value can be generated much sooner than expected.  

• The former tenant has fully vacated and paid £1.8m for dilapidations. 

• This sum was informed and reviewed by independent advisors.  

• As per the terms of his lease, the tenant was entitled to receive compensation if the lease was surrendered within the first 25 years. This term was included in the lease to reflect the significant (c.£7.5m) refurbishments made by the tenant at the start of the lease. The amount of compensation the tenant is entitled to for surrendering the lease in October 2026 is c.£302k. 

• Therefore, the overall net amount received by The Crown Estate is £1.5m.  

• The Crown Estate is now focussed on determining the potential future use of the property aligned to our statutory duty under section 5 of the Crown Estate Act 1961 - to maintain the character of the Windsor Estate as a Royal park and forest. 

• Following completion of this review, the property will be marketed for its proposed future use by two nationally recognised agents. Any transaction will be subject to our established governance and approval processes. 

• We welcome the independent scrutiny these arrangements have received with the NAO confirming the Royal leases were informed by independent, professional valuations and that the prices agreed were within the recommended valuation ranges.