New Lease Buyback Scheme Takes Effect From 1 April 2015

  • Published Date: 31 Mar 2015

         In September 2014, the Government announced four enhancements to the Lease Buyback Scheme (LBS), in response to feedback received during the Our Singapore Conversation on Housing.

     

    2     The new LBS will benefit more elderly households and provide greater flexibility to suit different preferences and needs. These enhancements will come into effect from 1 April 2015:

     

    1. Extending the scheme to 4-room HDB flats: With this extension, the LBS will cover 75% of elderly HDB households compared to 35% currently. 4-room households will receive up to $10,000 cash bonus per household when they participate in the LBS. This is on top of the proceeds they receive from selling the tail-end lease of their flat to HDB. 
       
    2. Raising the income ceiling: The income ceiling for participating in the LBS will be raised to $10,000, from $3,000 per month. Similarly, the income ceiling for the Silver Housing Bonus (SHB) scheme will be raised from $3,000 to $10,000. 
       
    3. Lowering the CPF top-up requirement for households with two or more owners: For these households, each owner will only need to top up his or her CPF Retirement Account (RA) to the current Basic Retirement Sum (age-adjusted), instead of the current Full Retirement Sum (age-adjusted), hence allowing more upfront cash.
       
    4. Offering flexibility in the length of lease to be retained: Elderly households can choose the length of lease to be retained, ranging from 15 to 35 years (in 5-year increments), subject to the lease covering the youngest owner till age 95.

      Details on the new LBS and other monetisation options available are found in Annex.

     

    When and How To Apply

     

    3      From 1 April 2015, applicants can enjoy the new LBS by submitting an online application via the HDB InfoWEB. Those who need help completing the application may approach any HDB Branch for assistance.

     

    4      After the LBS application is submitted, HDB will conduct a personalised one-to-one financial counselling session for each household. The session seeks to help them better understand the LBS and the other monetisation options available, so that they can decide on an option that will best suit their priorities and retirement needs.

     

    Enquiries

     

    5      For more information on the LBS, the public can call HDB Branch Service Line at 1800-225-5432 between 8.00am and 5.00pm from Mondays to Fridays.