Sarah Ferguson has sold a Belgravia townhouse for £400,000 less than she paid for it

A spokesperson for Ferguson explained: "She was asked by the tenant to buy it and it seemed like a good time to sell. It's an investment property for her girls, and so the monies will be reinvested accordingly."

Sarah had reportedly originally purchased the townhouse as an investment for her daughters, Princess Beatrice and Princess Eugenie.

She is said to have told friends she was not actively looking to sell but agreed when the offer arose. Property experts suggest she may have done well to avoid a deeper loss.

Camilla Dell, founder of the boutique agency Black Brick, said: "She's lucky that she's sold it for as much as she did. The market is not good. The market in prime central London is down 4.7 percent this year and 24 percent since the peak of the market in 2014."

Speculation has swirled over how the proceeds might be used.

Sources close to Buckingham Palace suggested funds could go toward ensuring Sarah and her former husband Prince Andrew, 65, remain at Royal Lodge in Windsor.

The couple have lived there together for years despite their divorce.

King Charles, 76, has reportedly indicated privately they may be asked to move into Frogmore Cottage - the Windsor home once occupied by the Duke and Duchess of Sussex.

Andrew stepped back from public life after his widely criticized 2019 appearance on BBC's Newsnight, where he defended his association with Jeffrey Epstein.

His position was further damaged by revelations about financial settlements linked to his friendship with the late financier.

Sarah has faced her own scrutiny over connections to Epstein.

Recently revealed emails showed she remained in touch with him even after claiming to have severed ties.

In one message she described him as "a supreme friend" and offered what she called a "humble apology" for publicly distancing herself.

The fallout led to her losing several charitable roles, including with the Teenage Cancer Trust and the British Heart Foundation, both of which confirmed her departure after renewed attention on her relationship with Epstein.