Andrew Mountbatten-Windsor, the former prince, sublet three cottages on the royal estate where he lived rent-free, a report from a British spending watchdog found, adding to deep criticism that he was already facing after a stunning fall from grace.
Mr. Mountbatten-Windsor, the brother of King Charles III, lived in a sprawling 30-room home at Royal Lodge, an estate in Windsor, until February, when he was ousted following fresh revelations about his relationship with the convicted sex offender Jeffrey Epstein.
The report released on Friday morning by the National Audit Office, a public spending watchdog, showed that Mr. Mountbatten-Windsor received income from renting out three cottages on the property.
“In the case of Royal Lodge, three cottages on the estate were sublet with income generated payable to Andrew Mountbatten-Windsor,” the report said, though it noted that the properties had been vacant since April. The report added, “We do not know what rent was charged.”
Mr. Mountbatten-Windsor was personally only required to pay a “peppercorn” rent, a centuries-old legal practice in Britain in which a token fee is agreed upon in order to create a valid lease. The audit office said that the lease “in practice is zero pounds.” The former prince did pay 1 million pounds, or around $1.35 million, for the lease in 2003 and also paid 7.5 million pounds to refurbish the property in 2005.
The report said that a provision in the Royal Lodge lease allowed Mr. Mountbatten-Windsor to sublet the property. Similar provisions exist in the leases of several other royal properties, allowing residents to generate income with permission from the Crown Estate.
Working members of the royal family usually have their housing provided at no cost in exchange for their official duties. Mr. Mountbatten-Windsor stepped back from official, public-facing royal duties in 2019, after a damaging interview about his links to Mr. Epstein. He was later stripped of his royal titles, and the king forced him to leave Royal Lodge in February.
Later that month, he was arrested and released as part of an investigation into misconduct in public office over his ties to Mr. Epstein, following accusations that he had shared confidential documents with Mr. Epstein while serving as a British trade envoy. Last month, the police said they were also assessing reports that a woman had been taken to an address in Windsor in 2010 for sexual purposes. Mr. Mountbatten-Windsor has denied any wrongdoing and has not been charged with a crime.
A lawyer representing Mr. Mountbatten-Windsor did not immediately respond to a request for comment.
A spokesman for Buckingham Palace said it was grateful to the National Audit Office for the report, “which is in line with the Royal Household’s commitment to transparency.”
“We hope that the findings will help correct, clarify or contextualize a number of points regarding Royal properties,” the statement continued. “As the report notes, arrangements for properties managed by the Royal Household vary based on a number of factors to ensure residences are filled appropriately, depending on their location, tenants and purpose.”
A photo of Mr. Mountbatten-Windsor driving near his current home on the Sandringham Estate in Norfolk on Thursday showed what appeared to be a large bruise on his face. The cause was unknown, but the image was splashed across the front pages of many of Britain’s tabloid newspapers on Friday morning, with headlines highlighting the “mystery bruise.”
Mr. Mountbatten-Windsor has been living at the Sandringham Estate, paid for privately by the king, since February.
Michael D. Shear contributed reporting.
