Meghan Markle and Prince Harry are said to be paying £18,000 a month to keep the sprawling Frogmore Cottage as their official British base as they spend most of their time in Los Angeles after leaving the Royal Family earlier this year.
The pair quietly started to pay rent on the property at the beginning of last month, according to reports in the Mail on Sunday.
However it could take more than 11 years of payments to cover the eye-watering £2.4million at the current monthly level, without accounting for interest or running cost of the cottage, the report said.
The arrangement has been described as a ‘rental-plus’ agreement, which sees the couple pay more than what the commercial rate would be, enabling them to pay off the renovation with the excess.
Palace officials always insisted the couple would repay that taxpayer-funded Sovereign Grant expenditure “and meet the running costs going forward” following their sensational exit from royal duties in January.
The Duke and Duchess of Sussex, whilst repaying the Sovereign Grant for the refurbishment of Frogmore, will continue to use the property as their UK family home.
There are three sources of funding for the Queen and senior members of the Royal Family.
These are the Sovereign Grant, the Privy Purse – private income from the Duchy of Lancaster, a land portfolio – and the Queen’s personal wealth and income.
The Queen owns the Balmoral and Sandringham Estates which were inherited from her father, and these serve as part of her private expenses.
The couple moved to Frogmore Cottage, in the grounds of Frogmore Estate in Windsor, ahead of the arrival of their son, Archie Harrison Mountbatten-Windsor, last year.
But the pair were hit by harsh criticism when it emerged they had spent £2.4million on renovation works.
It has never been confirmed whether the Duke and Duchess will receive money from the Duchy of Cornwall – Prince Charles’ land portfolio, or Prince Charles’ private income.
Palace officials had always stated that the Sussexes would be paying an undisclosed sum to the Crown Estate in order to keep Frogmore as their British residence.
The residence is a Grade-II listed building based in Windsor which was made up of five separate housing units.
The Sussexes sparked fury when royal accounts revealed the Duke and Duchess of Sussex spent £2.4 million on renovations before moving in.
During the renovations, the five separate housing units were rejoined to the main property.
On top of this, the home had the beams and floors replaced and a new gas and water system was installed.
The house was fitted with ten bedrooms, new bathrooms, a kitchen and a nursery.