Prince Edward’s Leasehold at Bagshot Park – A Lesson in Long Leasehold Ownership
Recent coverage of Prince Edward’s tenure at Bagshot Park has reignited public discussion about what it really means to “own” a property on a long lease, writes Clive Scrivener, Founder Partner at Wimbledon-based Chartered Surveyors, Scrivener Tibbatts Ltd.
The fact that the Duke of Edinburgh happens to be a member of the Royal Family makes no difference whatsoever in legal terms: his position is identical to that of any private leaseholder purchasing a long lease at a peppercorn rent.
In 1998, Prince Edward and the Duchess of Edinburgh paid approximately £5 million for a 150-year lease of Bagshot Park, a substantial country residence in Surrey. Under the terms of that lease, they hold the property for the defined term, are responsible for its repair and maintenance, and pay no ongoing rent – the lease being held at a peppercorn ground rent. When the 150-year term expires, the property will revert to the freeholder; the Crown Estate.
This arrangement is legally indistinguishable from an ordinary transaction such as Mr S paying £300,000 for a 150-year lease of a one-bedroom flat at a peppercorn ground rent. In both cases, the buyer acquires a long leasehold interest – a time-limited ownership that provides nearly all the practical benefits of freehold ownership during the lease term. Both leaseholders can sell, mortgage, or occupy the property as they wish, subject to the usual lease covenants. The key distinction is only one of scale and value, not of principle.
The concept of the peppercorn ground rent reflects the fact that the full capital value has been paid upfront. Rather than paying rent each year, the lessee pays a premium at the outset and in return enjoys possession for the duration of the lease. At the end of that period, ownership reverts to the freeholder, exactly as agreed from the outset.
In essence, English property law treats all leaseholders equally. Whether the lessee is a Prince residing in a Royal Estate or an ordinary buyer of a modest flat, the same framework applies: a lease confers ownership for a fixed period of years, subject to covenants and reversion at expiry. Prince Edward’s arrangement is therefore a textbook example of a private long-lease transaction – prestigious, perhaps, but legally quite ordinary.
If you own a long leasehold property where the Crown Estate are the Freeholder and require advice Clive Scrivener can help. If you would like to discuss something related to a property valuation please contact Clive direct via email at Clive@scrivenertibbatts.co.uk or call 020 8971 2983.
(Image: Pexels.com)
