MPs demand Crown Estate explains why Prince Andrew paid 'peppercorn' rent at Royal Lodge

Parliament's spending watchdog has asked the Crown Estate to explain the rationale behind Prince Andrew's "peppercorn" rent at Royal Lodge.

The Public Accounts Committee (PAC) has written to the Treasury and the Crown Estate after raising concerns over the value for money of the prince's living arrangements. The King's team is said to be in talks with his brother about leaving the property voluntarily following renewed controversy over his links to the late paedophile financier Jeffrey Epstein.

Andrew signed a 75-year lease in 2003 after paying an initial down payment of £1m and spent £7.5m on renovations as part of the agreement. He lives there with his ex-wife, Sarah Ferguson.

"Peppercorn rent" is a legal term used in leases to show that rent technically exists, so the lease is valid, but it's nominal, often literally £1 a year or just a symbolic amount. In practice, it means the tenant pays no rent.

In a letter published on Wednesday, PAC chairman and Tory MP Sir Geoffrey Clifton-Brown, said: "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." He asked "that you write to us providing an update on the status of, and rationale for, the lease". Prince Andrew gave up his titles ahead of the publication of the posthumous memoirs of Virginia Giuffre, who accused the prince of sexually abusing her as a 17-year-old.

He has strenuously denied the allegations. Criticism has now turned to the 30-room mansion in Windsor he has lived in effectively rent-free since 2003.

Sir Geoffrey said the Crown Estate has a duty to manage its land "according to the best consideration of money or money's worth which in their opinion can be reasonably obtained". Read more: Where could Prince Andrew move to if he leaves Royal Lodge?No simple solution to problem of Prince Andrew and Royal Lodge He went on: "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.

"They must also be justifiable in comparison to other options for the use or disposal of the property. "It is also a matter of concern to the committee that the terms of the lease, including those relating to maintenance, are being effectively enforced to maintain the value and character of this nationally important royal residence." He has requested a response on or before 28 November, and said the committee will then decide if a public evidence session should be held..