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This was not a general principle but limited to the specific cases. There is no established principle in International law on this matter.
However, one might consider the position taken by HM Queen Elizabeth II. Formal announcenents are still made in the Court Circular of, for example, "today is the ...th birthday of King Constantine of the Hellenes" or, also, of "Crown Prince Alexnader of Yugoslavia." Recently when Princess Margarita of Romania was received with her husband by the Prince of Wales at Clarence House, the announcemenrt appeared that Crown Princess Margarita of Romania and Prince Radu of Romania" were received etc.. even though these titles were both conferred by her father.
The invitations to the wedding of the duke and Duchess of Cambridge were all issued to the former sovereigns with their full titles "i.e. HM King Michael of Romania" and these titles were also used in the protocol for the seating for the wedding dinner etc.
The same applied to King Simeon, even though when he received the Golden Fleece it was given to him in the royal decree simply as His Excellency Simeon Saxe-Coburg and not with the title of King. But when he is inivted to royal functions in Spain, he is nonetheless invited with the title of Majesty and King.
If you watched the funeral of Archduke Otto, you may have heard the telegram from the Pope which referred, in German, to His Imperial Highness Archduke Otto, Crown Prince of Hungary (Perhaps to the discomfort of the representatives of the Austrian republic there present).
When the Earl of Essex attended a function in Germany, I noted that the court circular referred to Sie Erlaucht Erbprinz... for (I think) the heredirary prince of Waldburg-Zeil), even though quaklifications such as Erlaucht (usually translated as Illustrious Highness) are not recongised in Germany.
When Count Attolico was ambassador of Italy to London I saw he was referred to as such in the court cifcular even though i am absolutely certain that this title (conferred upon his father, then Italian ambassador to Hitler's Germany) was not used in the official letters of credence.
So I think you will find that most courts accord the former heads of reigning families and the family members their titles - and I know that Buckingham Palace has chosen to ignore the Greek government when, in the past, it protested at this usage.
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