Prince Harry and Meghan Markle May Have a New Castle to Call Home Thanks to the Queen: Report

The cottage is the former residence of Peter Townsend, the famous lover of the Queen's late sister Princess Margaret

Which royal residence will Prince Harry and Meghan Markle settle in next?

While the couple have made Nottingham Cottage — a 1,300-square-foot, two-bedroom in the compound of Kensington Palace — their starter home, they could be adding another piece of real estate to their collection. Queen Elizabeth is gifting Adelaide Cottage on the Windsor Castle estate to Harry and Meghan, reports the Mail on Sunday.

Kensington Palace had no comment when reached by PEOPLE.

The cottage is the former residence of Peter Townsend, the famous lover of the Queen’s late sister Princess Margaret. (Their relationship was a major storyline in the first season of The Crown.)

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Adelaide Cottage Rumored to be Wedding Gift from the Queen
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The residence boasts a marble Greco-Egyptian fireplace and a main bedroom featuring “coved ceiling with gilded dolphins and rope ornament reused from the Royal yacht Royal George,” according to Historic England.

Adelaide Cottage would also hold a special meaning to the newlyweds, who tied the knot in May at St. George’s Chapel, located within the grounds of Windsor Castle. “Windsor is a very special place for Prince Harry, and he and Ms. Markle have regularly spent time there during the last year,” a Kensington Palace previously said.

York Cottage
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It has also been reported that Queen Elizabeth gave her grandson and his new bride York Cottage on her Sandringham Estate as a wedding gift ahead of the nuptials, according to The Daily Mirror. The Queen likes gifting houses as gifts — she previously bestowed Anmer Hall, also at Sandringham, to Kate Middleton and Prince William.

RELATED VIDEO: The Queen Has a Never-Before-Seen Photo of Prince Harry and Meghan Markle in Her Living Room

Rumors have also circulated that Meghan and Harry signed a two-year lease for an estate in the Cotswolds, about 90 minutes outside London. Locals told PEOPLE that the couple live in the area of Great Tew – or, at the very least, are extremely frequent visitors – and have been spotted at Soho Farmhouse, a hotel and members’ club. (One woman even claimed that she learned through the “Farmhouse grapevine” that it’s the spot where the couple first met!)

And they’d be in good (famous!) company — royal wedding attendees David and Victoria Beckham also have a country home there.

Kensington Palace
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Nottingham Cottage, which was once the residence of Queen Elizabeth’s nanny Marion Crawford, gets its name from the original palace building. While known mainly for being the palace where Princess Diana lived in the last years of her life, and where William and Harry were brought up, the palace was originally known as Nottingham House — a mansion that William III bought in 1689. He had been looking for a residence away from the River Thames. It was the main home of sovereigns until 1760, when George II died there. Queen Victoria was born and raised in the residence.

They have plenty of family members nearby in Kensington Palace. For starters, Kate and William occupy Apartment 1A with their three children — Prince George, Princess Charlotte and baby Prince Louis. The duo moved into the 22-room residence in 2012 after announcing their first pregnancy.

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