Sarah Ferguson has set her sights on Adelaide Cottage as Prince William and Princess Kate are set to leave the residence next month, according to a source.
It comes as Prince Andrew and Ms Ferguson are preparing for their time at Royal Lodge to come to an end.
It had originally been hoped that the pair would move into Frogmore Cottage, but a friend of the two has said it is “too small” for them.
The insider told The Sun: “Incredibly Sarah has said she wants Adelaide Cottage.
Sarah Ferguson has set her sights on Adelaide Cottage as her exit from Royal Lodge gets closer
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“Sarah and Andy have lived together at Royal Lodge since 2008 despite being divorced and seen like they are still a married couple."
They added: “Frogmore Cottage is too small for both and Adelaide Cottage is around the corner so they will see each other whenever they want.
“Both have space for their daughters Eugenie and Beatrice and thier families to visit".
Friends have also said that Ms Ferguson feels like she deserves a royal residence to spend her time in.
Sarah Ferguson reportedly received a sum between £600,000-£800,000 as part of her divorce settlement from Prince Andrew.
Any move for Andrew and Ms Ferguson would result in a downsizing from their current home, and the decision comes just less than two weeks after they agreed to stop using their Duke and Duchess of York titles.
The Prince and Princess of Wales are set to leave Adelaide Cottage in the coming weeks
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Kate and William are planning to make the move from Adelaide Cottage to Forest Lodge before the end of 2025.
William and Kate view Forest Lodge as a perfect environment to raise Prince George, Princess Charlotte, and Prince Louis in a more rural setting.
Both Forest Lodge and Royal Lodge are in close proximity within Windsor Great Park, surrounded by fields and woodlands.
The closeness of the two properties has become an issue for the Waleses as the move approaches.
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Princess Kate is concerned about the proximity of Prince Andrew while he stays at Royal Lodge
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Kate is reportedly experiencing significant unease about the proximity to the Royal Lodge while Prince Andrew is still in residence.
A source told the Mail: “Catherine shudders at the thought of living so close to Royal Lodge while Prince Andrew is still in it.”
The future King has made his feelings clear regarding his uncle as he continues to occupy the estate.
“William wants him gone before they start to move in next week,” the source claimed.