Prince Andrew and Sarah Ferguson are said to be "distraught" over fears they might be "evicted" from their £30million Windsor mansion.
The claims emerged as King Charles is set to slash the Duke of York's annual £249,000 income - with Andrew reportedly telling his friends he might be unable to afford the property's running costs.
Andrew had previously been warned that his income may be cut when a senior royal made a joke over Christmas, saying: "We will kick Andrew out of the house."
The Duke is said to be shocked to learn that his annual grant would be cut from April and that he may be required to leave Royal Lodge - where he has been living with his ex-wife Sarah, Duchess of York - by the summer.
A source told The Sun : "Andrew and Sarah are distraught they have been given such short notice. The Queen died only a few months ago.
“He’s not being explicitly kicked out but it’s expected that he won’t be able to afford the maintenance."
The sprawling 30-room property set in Windsor Great Park - around three miles from his late mother's main residence Windsor Castle - is reportedly in dire need of refurbishment.
The source said it has a swimming pool and 98 acres of land.
But Prince Andrew's loss of income since stepping down from official royal duties mean he may struggle to find the cash to maintain the Grade-II listed property.
The insider added: "He's not being explicitly kicked out but it's expected that he won't be able to afford the maintenance."
Before the late Queen's death last year, Andrew is said to have relied on her generosity surviving on private funds from the Duchy of Lancaster, last reported at £249,000 a year.
The royal estate is now owned by King Charles, with members of the family all told to expect tighter budgets moving forward.
A cut to Andrew's income will see him having to rely on his Navy pension alone.
But despite his income being cut down, it is understood that the King will not leave his brother Andrew homeless or penniless.
A source said: "This is about Charles telling Andrew he can use his own money to pay for things."
Royal Lodge was leased to Prince Andrew following the Queen Mother's death.
Along with the main house, the lease included the Gardener's Cottage, the Chapel Lodge, six Lodge Cottages, police security accommodation and a whopping 40 hectares of land.
He was required to pay for any renovations himself, which reportedly were in the region of £7.5million.
In 2004, he then moved into Royal Lodge with his two daughters Princess Beatrice and Princess Eugenie and soon after so did Fergie.
In an interview in 2021, Fergie explained the couple's decision for her to continue living in the UK whenever she is in the UK.
She told the Sunday Times : "I travel a lot and I've always been able to make wherever I am home. If I am staying in a hotel I have the same family photographs and scented candles around me.
"When I’m in the UK I’m lucky enough to stay at Royal Lodge. I wouldn’t call it my home as that would be presumptuous," she added.
Their unusual relationship has even meant they have been forced to deny they had got back together.
Sarah once told the Daily Mail: "We're the happiest divorced couple in the world. We're divorced to each other, not from each other."
