Prince Andrew became an outcast tonight after the King finally stripped him of his titles and home.

From now on, the former Duke of York will simply be known as Mr Andrew Mountbatten Windsor – losing even his birth title of prince.

Andrew, 65, has also agreed to surrender his lease on Royal Lodge and will be banished to a private home on the monarch's Sandringham Estate in Norfolk.

In a clinically cold statement, Buckingham Palace made it clear that the censures were 'deemed necessary, not withstanding the fact that he continues to deny the allegations against him', a reference to claims by the late Virginia Giuffre that she was sex-trafficked to the late Queen's son by convicted paedophile Jeffrey Epstein.

Sources said it was 'clear that there have been serious lapses of judgment'.

The Palace added pointedly: 'Their Majesties wish to make clear that their thoughts and utmost sympathies have been, and will remain with, the victims and survivors of any and all forms of abuse.'

The brutal 109-word statement came after weeks of renewed accusations, triggered by The Mail on Sunday, which revealed bombshell emails laying bare the depth of his friendship with Epstein and revealing that the prince lied when he claimed to have cut off all contact with the predator in 2010.

Combined with Mrs Giuffre's devastating posthumous memoir, which was published last week, further revelations about Andrew's links with questionable businessmen and mounting public fury over the advantageous lease on his Windsor mansion, the King acted decisively once and for all.

In a clinically cold statement, Buckingham Palace made it clear that the censures were 'deemed necessary, not withstanding the fact that he continues to deny the allegations against him'

Buckingham Palace's statement marks a devastating and unprecedented fall from grace for a man who was born second in line to the throne, found fame as a Falklands hero and was handed a plum role as Britain's special ambassador for trade.

The Palace said: 'His Majesty has today initiated a formal process to remove the Style, Titles and Honours of Prince Andrew.

'Prince Andrew will now be known as Andrew Mountbatten Windsor. His lease on Royal Lodge has, to date, provided him with legal protection to continue in residence. Formal notice has now been served to surrender the lease and he will move to alternative private accommodation. These censures are deemed necessary, notwithstanding the fact that he continues to deny the allegations against him.'

Sources told the Daily Mail that the move was entirely down to the King and his advisors, without pressure from the Government or other family members, such as Prince William. It was prompted, they said, as a result of the 'serious lapses of judgment which his brother has shown'.

They also made it clear that His Majesty had the support of his family, including the Prince of Wales.

A Kensington Palace source said: 'The Royal Family, including the Prince of Wales, fully support the King's leadership on this matter. These decisions have been the King's, with the support of the wider family.'

The Royal Family has also taken into account the personal welfare of all those involved, including Andrew himself.

Another source revealed: 'The process has been under way for some while, but there was a need to get it right in the face of some very big challenges.'

In another brutally dismissive remark, sources said that Andrew's ex-wife, Sarah Ferguson, with whom he still lives, 'will make her own arrangements' when it comes to her future.

While she could live with Andrew in Norfolk it is understood that she intends to, finally, live separately from him, almost 30 years after they divorced.

Andrew is eighth in line to the throne and a counsellor of state who could step in for the King, although Parliament has made it clear that non-working royals will not serve in this capacity.

Just under two weeks ago the King forced Andrew to voluntarily give up the use of his titles, but it was clear public opinion was demanding something more.

As the Dukedom of York is a Peerage, His Majesty is now sending Royal Warrants to the Lord Chancellor, who is responsible for maintaining the Roll of the Peerage, to secure the removal of the Dukedom of York from the Peerage Roll, and the Title of Prince and Style of 'Royal Highness'.

His titles of Inverness and Killyleagh are similarly affected. The honours affected are his Order of the Garter and Knight Grand Cross of the Victorian Order.

Asked why they had not opted to abolish the Dukedom using an Act of Parliament, sources explained that would take up precious Parliamentary time, preventing Parliament from focusing on urgent national issues.

It is understood that the King is doing all he can 'within his own Royal Prerogative'.

Although the Dukedom of York is not extinguished – meaning his daughters Beatrice and Eugenie, whom he and the King were keen to protect, will remain formally princesses of York – it can no longer be used officially by Andrew. As daughters of the son of a sovereign, HRH Princess Beatrice and HRH Princess Eugenie retain their titles in line with King George V's Letters Patent of 1917.

Sources said His Majesty acted 'swiftly' following recent developments which led to his brother relinquishing the use of his titles and honours 'in the most immediate and efficient way possible'.

A longer-term resolution to all the aligned issues was always going to take a little longer to enact due to the complexities of the legal and constitutional position, they added. But they stressed that 'the necessity of further action was never in doubt'.

It is understood that the King needed 'time, legal and constitutional expertise, and support from the wider family' to bring his brother's downfall about.

Andrew's name change takes place immediately. But there is no need to amend his birth certificate as the change applies forthwith, not retrospectively.

Insiders said the relevant Government authorities were consulted. The Government has been clear it is constitutionally proper for His Majesty to take this action and that it supports the decision taken, they stressed.

As for Royal Lodge, notice was not served on Prince Andrew to move by the King. As it was Andrew's lease, it was up to the former prince to serve notice himself, suggesting that he is not fighting the process.

It is understood that he will leave the 30-room mansion he has called home for more than 20 years 'as soon as practicable'.

The Palace has not announced exactly where on the Sandringham estate Andrew will move to.

However the Daily Mail understands that it is not Wood Farm, as had been speculated.

Sources said it has been necessary, given how swiftly events were unfolding, to focus on getting proper security in place.

In an act of mercy, the King will fund the move privately and, as Andrew remains a member of the family, Charles will also make 'private provisions' for him.

Andrew had a 'cast-iron' 75-year lease on Royal Lodge, but royal advisors have been poring over the paperwork for months to get him out, to little effect. It is understood that his departure involved 'negotiation between all parties' for him to agree to serve formal notice to surrender.

Under the terms of his lease, Andrew would be due anything up to £500,000 to surrender the property early given that he had paid £7.5million for its refurbishment.

While that is a matter for the Crown Estate, which is effectively his landlord, sources said yesterday it was 'possible remedial works may affect any compensation due' – which is likely to head off the anger that would follow any suggestion that he could get money that should go to the Government and therefore taxpayers.