The correspondence confirmed that Andrew would not receive any compensation for giving up Royal Lodge, owing to the extent of repairs needed.
The Telegraph revealed last month that he would be denied any refund, having failed to meet requirements to maintain the vast estate, including ensuring the exterior stonework was in good condition every five years and the interior was painted every seven years.
Andrew and Prince William attend the funeral of the Duchess of Kent on September 4.Credit: Alamy Stock Photo
Under the terms of his 75-year lease, Andrew could have been entitled to £488,000 ($982,000) for an early surrender of his contract.
But the Crown Estate said the property was so dilapidated that in “all likelihood” he would “not be owed any compensation”.
It also admitted that an independent architect had been appointed to monitor the upkeep, but that inspections were carried out on a “need-only” basis.
While Andrew is still living in sprawling Windsor property, he remains responsible for its ongoing costs of maintenance and repair.
Andrew with his former wife, Sarah Ferguson, in April.Credit: WireImage
Elsewhere, it was revealed that once Andrew and his former wife, Sarah Ferguson, have moved out of their home, it could be leased on the open market.
The documents also show that Andrew retains a lease with the Crown Estate on a lodge in the grounds of Sunninghill Park, his marital home, which is occupied by a member of staff.
Andrew sold the 12-bedroom mansion, which was a wedding gift from the late Queen Elizabeth, to Kazakh billionaire Timur Kulibayev, in 2007 for £15 million – £3 million over the asking price – only for it to remain empty for almost a decade.
The spending watchdog also published information about Prince William and Princess Catherine’s lease on Forest Lodge, the Wales’ new Windsor home.
The committee said the couple, who moved into the property with their children in October, has a “20-year non-assignable lease” with the Crown Estate that began on July 5 this year with “open market rent”.
The agreement was made after the prince made an initial approach, following discussions with the royal household.
The Crown Estate said: “Negotiations were conducted on an arm’s length basis, to ensure appropriate market terms were agreed.”
It said independent valuers from Hamptons and Savills estate agents were appointed to value the property, while the prince and princess received independent legal and property advice.
Prince Edward, the Duke of Edinburgh at his home in Bagshot Park.Credit: Buckingham Palace via Getty Images
The documents also revealed that Prince Edward, the Duke of Edinburgh, who has leased the 20.6-hectare Bagshot Park in Surrey from the Crown Estate for the past 25 years, also pays a peppercorn rent.
Like Andrew, who paid an initial outlay of £8.5 million between 2003 and 2005, the duke paid £5 million up front on a 150-year lease.
Meanwhile, Princess Alexandra, Elizabeth II’s cousin, pays little more than £2700 a year to live in the Grade II-listed Thatched House Lodge within Richmond Park.
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Clifton-Brown said that, having “reflected” on the information provided, the committee had decided to launch an inquiry based on the information it had received from the Treasury and Crown Estate, as well as from the National Audit Office, which recently updated a report it produced in 2005 examining the royal family’s leases.
The date of its first evidence session will be announced in due course.
Clifton-Brown said: “We would like to thank the Crown Estate commissioners and HM Treasury for their considered responses to our questions.
“In publishing these responses, the public accounts committee fulfils one of its primary purposes – to aid transparency in public interest information, as part of its overall mission to secure value for money for the taxpayer.
“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.”
Crown Estate chief executive Dan Labbad said: “We very much welcome the news of the committee’s inquiry. We have provided detailed answers to the committee’s questions to date and look forward to working with the NAO and responding to further questions to support the inquiry process.”
The Crown Estate – a vast portfolio of land and property – belongs to the reigning monarch “in right of the Crown” but is not their private property.
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It is run as an independent business, with profits paid directly to the Treasury. A proportion of the money, known as the Sovereign Grant, is then handed to the royal family to support their official duties.
The Telegraph, London
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