King Charles has long sought Andrew’s exit from Royal Lodge, which Andrew secured in 2004 with a 75-year lease for £1 million after the Queen Mother’s death, alongside a £7.5 million outlay for repairs. The lease leaves him largely rent-free (beyond a nominal peppercorn sum) but saddled with heavy running costs. Palace sources argue that Andrew’s determination to keep the mansion has contributed to reputational and financial entanglements, including relationships with wealthy figures such as Jeffrey Epstein and British businessman Adrian Gleave. Charles cut Andrew’s private allowance more than a year ago and offered Frogmore Cottage as an alternative—an offer Andrew initially rejected, insisting his lease was “cast iron.”

A new twist suggests Andrew and Ferguson might finally separate their living arrangements, with Andrew potentially taking Frogmore Cottage (formerly Harry and Meghan’s home) and Ferguson eyeing Adelaide Cottage (currently being vacated by the Prince and Princess of Wales). Allies of the couple dispute claims they “demanded” two homes, saying that proposal originated from “the other side” early in talks and that they have not issued ultimatums—only explored solutions. Buckingham Palace declined to comment; insiders say they “do not recognise” that version of events.

The King faces a delicate balance: he has no legal responsibility toward Ferguson—effectively a long-term lodger at Royal Lodge—but may see prudence in keeping her “in the fold,” wary of potential tell-all publications. Ferguson is said to be deeply embarrassed by a resurfaced, “cringeworthy” email apologising to Epstein after publicly distancing herself following his 2008 conviction. Sources claim she also sought money from him to cover debts, raising concerns that the scandal has damaged her business interests and future book projects.

Meanwhile, public outcry over Andrew’s privilege amid scandal has intensified. Earlier this month he relinquished remaining honorary titles, including Duke of York, though there are calls for Parliament to strip them formally. Separately, posthumous allegations by Virginia Giuffre in her memoir Nobody’s Girl renewed scrutiny of Andrew’s past; he vehemently denies her claims.

Negotiations over housing are described as at an “advanced stage” but not settled. If Andrew and Ferguson accept alternative residences like Frogmore or Adelaide, they would pay commercial rents to the Crown Estate. Whether Charles would resume any financial support if Andrew moves remains unclear.

The broader objective appears to be a decisive reset: remove the reputational burden of Royal Lodge, place Andrew in a smaller, properly funded property, and reduce the risk of further embarrassment. For Ferguson, who has battled breast and skin cancers and now faces dwindling public sympathy and commercial prospects, the stakes are personal and immediate. Her friends’ blunt assessment captures the moment: without Royal Lodge, her future is “hanging in the balance.”