Harry and Meghan’s Montecito Mansion Faces Fresh Sale Speculation as Cost of Keeping California Estate Mounts

Prince Harry and Meghan Markle say they’re keeping their Montecito mansion despite relocating the family to the UK, but Santa Barbara real estate sources tells The Post that brokers are already buzzing about a potential listing.Instagram/meghan

Prince Harry and Meghan Markle have said they intend to retain their Montecito mansion as they prepare to move their family back to Britain, but speculation within Santa Barbara’s luxury property market suggests the California estate may eventually be put up for sale.

A source familiar with the local real estate market said there have been “rumblings” about a possible sale, while noting that brokers would be eager to secure the listing. The speculation comes as the substantial annual cost of maintaining the Sussexes’ California home has come into sharper focus.

Mortgage payments and property taxes alone are estimated to exceed $600,000 a year. Once insurance, security and maintenance of the nearly eight-acre estate are considered, the overall expense is likely higher.

However, Harry and Meghan have not announced plans to sell the property, and representatives for the couple did not respond to a request for comment.

Brokers speculate about a possible off-market deal

Meghan Markle at her Montecito, California home.meghan/Instagram

Jason Streatfeild, a Douglas Elliman broker representing the Santa Barbara and Montecito market, said properties of this caliber are not always publicly listed before negotiations begin.

“Many times properties like this will trade off market with an NDA signed and all of the terms sealed until the property records at the county,” he said.

Streatfeild suggested it was possible that discussions or private showings could already be taking place, although his comments were speculation rather than confirmation that the Sussexes are actively marketing the estate.

The couple have said they plan to keep both their Montecito residence and their vacation property in Portugal.

Their circumstances are nevertheless changing significantly. Harry and Meghan are moving to the UK this month with Prince Archie, 7, and Princess Lilibet, 5, ending six years of primarily living in California after stepping back from senior royal duties in 2020.

Their children are expected to begin school in Britain in September, while the family plans to establish a private UK residence whose location has not been disclosed. King Charles was informed of the move over the weekend.

The cost of maintaining Montecito

County records show the couple’s company bought the 7.38-acre estate for $14.65 million in 2020, financed with a $9.52 million adjustable-rate mortgage that runs an estimated $40,000 to $43,000 a month.

Santa Barbara County records show that Rockbridge LLC, the Sussexes’ company, purchased the 7.38-acre Montecito property for $14.65 million on June 9, 2020.

Three days later, the company secured a $9.52 million loan from City National Bank.

The adjustable-rate mortgage began at 2.49% and can rise as high as 7.49% after it resets in July 2030. With no refinancing recorded, the loan is estimated to require monthly payments of approximately $40,000 to $43,000 on a standard 30-year term.

That would put annual mortgage payments above $480,000 before property taxes, insurance and maintenance are included.

The estate also carried a 2025 property tax bill of $149,668, based on an assessed value of $14.38 million.

Tax records show those payments have steadily increased, from $138,629 in 2021-22 to $141,645, $144,229 and $146,930 in subsequent years before reaching the latest figure.

Altogether, Harry and Meghan have paid approximately $721,000 in property taxes over those five years.

Once insurance, landscaping and upkeep across 7.38 acres, along with security costs, are factored in, the property’s annual fixed expenses are likely to exceed $650,000.

A move to Britain could change the calculation

They’ve also paid roughly $721,000 in property taxes since the assessment settled at their purchase price, with insurance, grounds upkeep and security pushing total fixed costs past $600,000 a year.meghan/Instagram

One Santa Barbara real estate source said the estate would be difficult to give up but acknowledged the significant financial burden involved in maintaining it.

The source suggested Harry and Meghan might wait several months before making any decision, or potentially spend a year assessing how their return to Britain develops.

If Britain ultimately becomes the family’s long-term base, the source said it would be difficult to imagine them continuing to maintain the Montecito property indefinitely.

The speculation also comes during a changing period for the couple’s commercial ventures.

Their five-year Netflix production agreement, initially valued at a reported $100 million, ended without a full renewal and was replaced by a smaller first-look arrangement.

Their documentary “Cookie Queens,” which Meghan promoted before its release, generated between $328,000 and $354,000 at the box office.

Harry could also face an eight-figure legal bill following the loss of a case against a British newspaper company.

Meanwhile, Meghan’s As Ever lifestyle business has faced questions of its own. A website glitch in January reportedly indicated approximately 650,000 unsold units remained in inventory. Insiders estimated that unsold jam alone could potentially result in a write-off of around $5 million once the perishable products pass their sell-by dates.

Montecito property could now be worth considerably more

Zillow values the home at $30.5 million and Redfin at $55.8 million, meaning a sale would still net the couple a massive profit.The Grosby Group / BACKGRI

Selling the mansion, however, could potentially produce a substantial return compared with what Harry and Meghan paid in 2020.

Streatfeild described the property as an approximately 18,000-square-foot ocean-view estate with nine bedrooms, 17 bathrooms, a swimming pool, tennis court and extensive grounds across seven acres.

He noted that three Montecito properties have sold for more than $50 million this year.

Based on current market conditions and the estate’s size and location, Streatfeild estimated that it could potentially be listed at around $75 million and ultimately sell somewhere between $55 million and $65 million.

Online property estimates vary considerably. Zillow values the estate at approximately $30.5 million, while Redfin places its value at $55.8 million.

For comparison, Streatfeild pointed to Adam Levine’s roughly 13,000-square-foot estate on three acres, which sold for $60 million.

A dramatically different market from 2020

Harry and Meghan’s original purchase now appears particularly favorable given what has happened to Montecito property values.

Before they acquired the estate for $14.65 million, the mansion had spent around five years on the market. It had originally been listed for $34.5 million in 2015.

Since 2020, demand for homes in Montecito has increased substantially.

“The demand for Montecito has exploded and the average sales price is just about doubled since they purchased the property,” Streatfeild said.

That rise means the Sussexes could potentially realize a significant gain if they eventually decide to sell.

For now, however, there is no confirmed listing and no announcement from Harry or Meghan indicating that their plans have changed. They maintain that the Montecito mansion will remain part of their property portfolio even as their family establishes a new base in Britain.

Whether that position remains practical after their move — given the estate’s considerable annual costs and sharply increased potential market value — is now fueling speculation among Montecito real estate professionals.