EXCLUSIVE: Inside the VERY Humble Abode Sarah Ferguson Seems 'Doomed' to Occupy As She and Andrew FINALLY Vacate $40Million Royal Lodge

Shamed Sarah Ferguson is bracing for another dramatic comedown as she leaves her Royal Lodge mansion, with insiders telling RadarOnline.com she is "doomed" to settle in a far more modest home that underscores how sharply her fortunes have shifted.

Ferguson, 66, who has lived for decades at the $40million, 31-room Lodge in Windsor Great Park with her former husband, the ex-Prince Andrew, 65, is now finally vacating the sprawling residence along with her former partner.

Sources told us the former Duchess of York is now facing the prospect of relocating to a small "granny annexe" on the grounds of her daughter Princess Beatrice's Oxfordshire home – a far cry from the palatial royal estate she is leaving behind.

Royal Lodge, a Grade II-listed mansion once occupied by the Queen Mother, had been Andrew's base under a long-term lease.

Sarah, who divorced Andrew in 1996 but continued to live with him, is said to be "on edge" about what comes next as the pair prepare to go their separate ways.

"The prospect of leaving Royal Lodge has been emotionally jarring for Sarah, as it represents the end of a long period of stability in her life," a source said.

"She feels as though circumstances beyond her control are forcing her hand, leaving her with limited choices and little room to maneuver."

Insiders say her most likely destination is now a one-bedroom annexe at Beatrice's Oxfordshire property, shared with her husband Edoardo Mapelli Mozzi.

Beatrice, 37, and Edoardo recently renovated the outbuilding, which was once a cattle shed, and planning records show extensive upgrades to make it habitable year-round.

"From a purely practical standpoint, the arrangement makes a great deal of sense," the source said.

"It allows Sarah to be near her daughter and remain part of daily family life, while still giving everyone their own space and privacy."

Our source added family considerations are central to the plan.

"Sarah has a very close bond with her granddaughter Sienna and is genuinely excited by the thought of being nearby and involved in her everyday life," the insider said.

"With Eugenie spending much of her time in Portugal, being based close to Beatrice feels like the most emotionally grounding option for her, even though it represents a major shift from how she has been living."

The annexe has its own entrance and utilities, and neighbors say it has been quietly prepared over recent months.

"It is obvious that the annexe has been carefully prepared with an occupant in mind," one local source said.

"Recent work has refreshed the exterior and infrastructure, and it now feels cozy and fully self-sufficient. That said, it is a world away from the grandeur and scale of Royal Lodge."

Andrew is now shifting his belongings out of the Royal Lodge and is relocating to the Marsh Farm home on King Charles' Sandringham estate.

"There is a strong feeling that this marks a definitive end to a long chapter of her life," a palace aide said.

"Sarah understands that Andrew's circumstances are unlikely to improve and is slowly adjusting to the reality of living in far more modest conditions going forward."

Speculation had swirled Ferguson might relocate abroad, possibly to Australia where her sister Jane Ferguson lives, or to Portugal where Princess Eugenie owns an oceanside villa.

But sources now say staying in Britain is now more likely.

"Sarah has no intention of retreating entirely from public life and still hopes to maintain a professional presence in the U.K.," an insider said.

"Basing herself discreetly near her daughter allows her to stay anchored while remaining accessible to potential work, even if her lifestyle is now far more modest than in the past."

For a woman once synonymous with royal privilege, the move signals a stark reset.

"This is very different from how Sarah once envisioned this chapter of her life unfolding," another source said.

"Even so, she has accepted the situation and is focused on adapting and making the most of the options she has left."