Photo: You Tube screen grab from
Tsen-Waye Tay

In an effort to make Singapore not just Singaporean-friendly but also make it ‘aged-person’ friendly, the Housing and Development Board’s (HDB) “Lease Buyback Scheme (LBS)” has been implemented, and currently, over 20 households residing in 5-room flats (and larger) have sold the tail end of their unit’s lease back to HDB in the first quarter of this year.

The Board received more than 200 LBS applications from owners of these bigger flats between Jan 1 and Mar 31 after the scheme was extended to them at the start of the year.

According to HDB, with the said extension, approximately 34,000 households are now eligible for the LBS, bringing the total number of households eligible for the scheme to about 130,000.

Lease Buy Back scheme

With the Lease Buyback Scheme (LBS), a flat dweller is able to monetise the flat and can get a steady stream of income in his/her retirement years, while continuing to live in it.

One can sell part of one’s flat’s lease to HDB and choose to retain the length of lease based on the age of the youngest owner. The proceeds from selling part of one’s flat’s lease will be used to top up one’s CPF Retirement Account (RA). The flat owner can then use his/her CPF RA savings to join CPF LIFE, which will provide him/her with a monthly income for life.

In order for a household to qualify for the LBS, the following conditions must be met:

How it works

If the household is eligible for the Lease Buyback Scheme (LBS), the flat owner will be able to:

  • Sell the tail-end lease of your 3-room or smaller flat, or 4-room flat, or 5-room or bigger flat to HDB and receive up to S$20,000 or S$10,000, or S$5,000 of LBS bonus, respectively
  • Use the net proceeds to top up your CPF Retirement Account (RA) to the specified requirements as shown:

For households with one owner, he or she will have to use the proceeds to top up the RA to the current age-adjusted Full Retirement Sum (FRS).

For households with two or more owners, each owner will have to use his/ her share of the proceeds to top up his/ her RA to the current age-adjusted Basic Retirement Sum (BRS).



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