LONDON -- Prince William and his wife will get a swanky new London home.

William and the Duchess of Cambridge, who are based in remote Wales, have picked an apartment in historic Kensington Palace as their permanent London base, officials said today.

Plans are under way to transform the apartment, now used for exhibitions and offices, to quarters fit for the newlyweds, a spokesman said.

The apartment they will live in was most recently inhabited by Queen Elizabeth II's younger sister, Princess Margaret, who lived there from the 1960s to 2002.

Kensington Palace itself also was the residence of the late Princess Diana, William's mother, and the prince had lived there with his brother Harry when he was younger.

William now lives with his wife in a rented house in Anglesey, north Wales, where he works as a Royal Air Force helicopter pilot.