Prince Harry and Meghan Markle have said they plan to keep their sprawling Montecito mansion as they prepare to relocate their family to Britain. However, the property’s hefty annual carrying costs and strong demand for luxury homes in the California enclave have fueled speculation that the Sussexes could eventually sell it.
The couple reportedly purchased the estate for $14.65 million in 2020, shortly after stepping back from royal duties and moving to the United States.
Montecito mansion costs more than $600,000 a year
The 7.38-acre property carries significant mortgage and tax expenses. According to Santa Barbara County records cited by The New York Post, the Sussexes’ company, Rockbridge LLC, took out a $9.52 million adjustable-rate mortgage from City National Bank shortly after purchasing the home.
Quick answers to key questions
The annual carrying costs for Harry and Meghan’s Montecito mansion exceed $650,000, which includes mortgage payments, property taxes, insurance, landscaping, and security expenses.
The couple may consider selling the Montecito home due to its substantial annual maintenance costs and the potential for a significant profit, especially given the strong demand for luxury homes in the area.
Harry and Meghan’s Montecito mansion could potentially be listed for around $75 million, with estimates suggesting it might sell for between $55 million and $65 million, depending on market conditions.
The decision to sell their mansion should consider their long-term plans in the UK, financial implications, and the ongoing costs of maintaining the property, balanced against potential profit from a sale.
The Montecito mansion features approximately 18,000 square feet, nine bedrooms, 17 bathrooms, an ocean view, a swimming pool, a tennis court, and extensive grounds, making it highly desirable in the luxury real estate market.
Additional expenses such as insurance, landscaping and security could push the overall annual cost above $650,000.
Broker says property could fetch $55 million-$75 million
Jason Streatfeild, a Douglas Elliman broker covering Santa Barbara and Montecito, said the estate could command a dramatically higher price than the Sussexes paid in 2020.
The property reportedly has around 18,000 square feet of living space, nine bedrooms, 17 bathrooms, an ocean view, a swimming pool, tennis court and extensive grounds.
Streatfeild estimated that it could be listed for around $75 million and potentially sell for between $55 million and $65 million, depending on market conditions.
He noted that Montecito has seen several sales above $50 million this year and said luxury property values in the area have surged since Harry and Meghan bought their home.
‘Every broker wants that listing’
A Santa Barbara luxury real estate source told The Post there have been “rumblings” that the Sussexes could sell the property.
The source said, “every broker wants that listing,” given the estate’s size, location and celebrity ownership.
Streatfeild also suggested that discussions about a potential sale could already be taking place privately.
“Many times properties like this will trade off market with an NDA signed,” he said, adding that such deals may only become public once county property records are updated.
Sussexes reportedly plan to keep the home
Despite the speculation, Harry and Meghan have said they intend to retain the Montecito mansion as they establish their new life in Britain.
The couple are reportedly moving to the UK with their children, Prince Archie and Princess Lilibet, with the children expected to begin school there in September.
They are also said to be planning a private residence in Britain, although its location has not been disclosed.
The Sussexes have indicated that they intend to keep both their Montecito estate and their property in Portugal.
A potential financial windfall
Selling the California mansion could nevertheless provide the couple with a substantial financial gain.
Purchased for $14.65 million, the property could potentially sell for several times that amount if Streatfeild’s estimates prove accurate. A sale in the $55 million-$65 million range would represent a huge increase in value over six years.
The decision could ultimately come down to how permanently the Sussexes establish themselves in Britain.
One source told The Post that the couple could wait several months or even a year to assess their new UK arrangement before deciding what to do with the California estate.
For now, Harry and Meghan appear committed to keeping their Montecito home. But with annual ownership costs running into hundreds of thousands of dollars and the property potentially worth tens of millions more than when they bought it, the mansion could become one of the biggest financial decisions of their post-royal life.
