An inquiry into the Crown Estate is set to be launched following questions over its lease of Royal Lodge at a peppercorn rent to disgraced Andrew Mountbatten-Windsor.
Parliament's spending watchdog has previously raised concerns about whether the cost of the 30-room Windsor mansion to the King’s brother, who has been stripped of his royal titles, was "achieving the best value for money".
Andrew handed in his notice on the property on October 30, the day same say it was announced that he had lost his titles.
While the notice is 12 months, he is expected to move from Royal Lodge to Sandringham early next year.
He is unlikely to receive any compensation for giving up the home because of the repairs that will be needed.
The Public Accounts Committee (PAC) asked the Crown Estate and Treasury to explain the rationale behind the 75-year lease, which Andrew took on the property in 2003.
On Tuesday it published letters from the Crown Estate and the Treasury, responding to queries about the arrangements for Royal Lodge.
Committee chairman Sir Geoffrey Clifton-Brown said: “Having reflected on what we have received, the information provided clearly forms the beginnings of a basis for an inquiry.
“The National Audit Office (NAO) supports the scrutiny function of this Committee.
“We now await the conclusions the NAO will draw from this information, and plan to hold an inquiry based on the resulting evidence base in the new year.”
Andrew was stripped of his prince title over his controversial links to the late paedophile financier Jeffrey Epstein.
King Charles also removed his knight companion of the Order of the Garter and his status as a knight grand cross of the Royal Victorian Order this week.
The former prince has consistently denied allegations of sexual abuse and his accuser, Virginia Giuffre, took her own life earlier this year.
In a briefing to MPs on the PAC, the Crown Estate said: "Our initial assessment is that while the extent of end of tenancy dilapidations and repairs required are not out of keeping with a tenancy of this duration, they will mean in all likelihood that Andrew Mountbatten-Windsor will not be owed any compensation for early surrender of the lease... once dilapidations are taken into account."
The Crown Estate added "before this position can be fully validated however, a full and thorough assessment must be undertaken post-occupation by an expert in dilapidation".
Andrew gave the minimum 12 month's notice that he would surrender the property on October 30. If no end-of-tenancy repairs were required, Andrew would have been entitled to £488,342.21 for ending his tenancy on October 30 2026.
