grace-and-favour noun (modifier) British (of a house, flat, etc) owned by the sovereign and granted free of rent to a person to whom the sovereign wishes to express gratitude Liberaldictionary.com
Collins English Dictionary – Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012 Examples from the Web for grace-and-favour Contemporary Examples of grace-and-favour
They paid only a peppercorn rent of £70 a month (including utilities), until a 2002 review of grace-and-favour homes.
Princess Michael Says Austerity Means No Restaurants Anymore (Just Catered Dinners At Home)
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