Prince Andrew and his ex-wife Sarah Ferguson have bought a luxury chalet in the Swiss resort of Verbier.

The chalet, thought to be worth up to £13 million ($20 million), was bought by the divorced couple on a joint mortgage.

The Duke and Duchess of York have links with the ski resort going back at least 17 years, when they went there on holiday with their two daughters.

The purchase has been described as a “family investment”. Buckingham Palace declined to comment.

The chalet was bought on a joint mortgage for a cost of between £8 million ($12 million) and £13 million ($20 million).

A source close to Sarah Ferguson described the purchase as a “family investment”.

“They holiday in Verbier several times each year as all the family are keen skiers and it makes sense to have their own place there,” the source said.

Although Prince Andrew and Sarah Ferguson divorced in 1996 after 10 years of marriage, they remained on good terms as they raised their two daughters, Princesses Beatrice and Eugenie, and the duchess lives in the family home of Royal Lodge in Berkshire.