Prince Harry is said to be facing a staggering annual bill of around $600,000 simply to keep his lavish Montecito mansion after moving back to Britain – before paying a cent toward insurance, staff or maintaining its sprawling seven-acre grounds.
Sources have exclusively told Radaronline.com the Duke and Duchess of Sussex are understood to be retaining their nine-bedroom California estate following their return to the UK this week, leaving Harry, 41, and Markle, 45, potentially funding three properties.
Alongside Montecito, they reportedly own a $8.5million holiday home in Portugal and are expected to live in a privately funded, non-royal residence in Britain’s Cotswolds.
A source familiar with the couple’s financial situation told us: “Keeping Montecito is an enormous financial commitment when Harry and Meghan will no longer be living there as their primary residence. The mortgage and property tax alone are estimated at roughly $600,000 annually, and that is before you consider security, insurance, gardeners, household staff and the constant maintenance required for an estate of that size. It could become an extraordinarily expensive second home.”
Known as the Chateau of Riven Rock, the Mediterranean-style mansion sits among the wealthy enclave east of Santa Barbara dubbed the American Riviera.
Its seven acres include rose gardens, a swimming pool and tennis court, while the mansion features a private movie theater, sauna and gym.
Santa Barbara County records show the Sussexes’ company, Rockbridge, purchased the property for $14.65million on June 9, 2020, shortly after the couple stepped away from royal duties and relocated to California.
Rockbridge subsequently took out a $9.52million adjustable-rate mortgage starting at 2.49 percent.
Assuming a 30-year term at that initial rate, repayments would amount to approximately $37,566 each month – or $450,792 annually.
The couple’s property taxes add another substantial expense.
It’s been reported the Sussexes paid $149,668 in the fees last year, with the bill having risen annually.
If that figure remains unchanged, their combined estimated mortgage repayments and property taxes would total $600,460 this year.
Another source said: “The headline number doesn’t represent the true cost of keeping the estate. A property with seven acres, a pool, tennis court and extensive gardens requires considerable upkeep. Once all those additional expenses are included, maintaining Montecito while simultaneously establishing another family home thousands of miles away becomes a significant financial undertaking.”
Harry and Meghan are also expected to retain the Portuguese property they reportedly bought for around $8million in 2023.
Their return to Britain creates yet another housing expense.
King Charles, 77, is not expected to provide accommodation for the Sussex family, meaning they will fund their own private residence, believed to be in the Cotswolds.
The triple-property arrangement comes as Harry faces another potentially substantial drain on his finances.
He has been ordered to pay millions in legal costs connected with his unsuccessful privacy case against the publisher of the Daily Mail, adding another major liability as the Sussexes establish their new life in Britain while retaining their homes overseas.
A source added: “Maintaining this number of expensive properties could put enormous strain on Harry and Meghan’s finances. Montecito alone potentially consumes hundreds of thousands of dollars every year before security, staffing, insurance, repairs and general upkeep are included. Add a home in Britain, the property in Portugal and Harry’s legal costs, and suddenly they are carrying an extraordinary level of expenditure.
“The Sussexes are undoubtedly wealthy, but wealth doesn’t make somebody immune from cash-flow problems. Their lifestyle requires substantial recurring income, and these aren’t expenses that simply disappear during a quieter year professionally. If earnings fall while costs remain at this level, maintaining everything could eventually become extremely difficult.”