1st Enhanced Lease Buyback Scheme – HDB flat for rent Singapore
What is the 1st Enhanced Lease Buyback Scheme (LBS)?
The LBS, introduced in 2009, helps lower-income elderly living in 3-room and smaller HDB flats by allowing them to sell the tail-end lease of their flat to the Government and use the net proceeds to enhance their retirement income. HDB flat for rent Singapore.
The Government has enhanced (1st) the LBS to further help the lower-income elderly, as follows:
- Lower CPF top-up requirement;
- Relax the eligibility criteria to allow more elderly households to qualify; and
- Increase the LBS bonus from $10,000 to $20,000 per household.
Who are eligible?
- Owners of a 3-room or smaller HDB flat, who do not concurrently own a second property and have lived in the flat for at least 5 years;
- All owners are at CPF Draw Down Age (currently age 63) or older, and at least one is a Singapore Citizen; and
- Gross household monthly income of $3,000 or less. HDB flat for rent Singapore.
How does the 1st Enhanced LBS work?
To qualify for the 1st Enhanced LBS, an eligible household needs to,
- Sell tail-end lease of flat to HDB to obtain net proceeds. HDB purchases the tail-end lease of the flat, leaving the household with a 30-year lease. The equity unlocked from the purchase of the tail end lease, less any outstanding loan and deductibles incurred during the transaction, forms the household’s net proceeds. HDB flat for rent Singapore
- Top up CPF. All owners of the household have to use their net proceeds to top up their CPF RA to the specified top-up requirements shown in the table below. The household’s total top-up must be at least $60,000. Households can keep up to $100,000 of net proceeds in cash. Net proceeds in excess of $100,000 will be used to help the owner with the lowest RA balance meet the prevailing Minimum Sum. HDB flat for rent Singapore.
Top-up Requirements under 1st Enhanced LBS:
| Lessee’s age | To top up till RA has: |
| < or = 70 | Prevailing MS (currently $139,000) |
| 71 to 79 | Prevailing MS – $10,000 (currently $129,000) |
| > or = 80 | Prevailing MS – $20,000 (currently $119,000) |
- Join CPF LIFE. All owners must use their full CPF RA savings to purchase a CPF LIFE plan if they have at least $40,000 (if below age 65) or $60,000 (if age 65 to 79) in their RA after the top-up. HDB flat for rent Singapore.
When and how to apply?
- Applications will be available from 1 February 2013.
- Applicants can submit an online application via the HDB InfoWeb, using their SingPass, from 1 February 2013. Applicants who need help completing the application may approach any HDB Branch for assistance.
- Eligible elderly households with pending LBS applications submitted on or after 17 February 2012 can opt for the 1st Enhanced LBS by submitting a fresh application from 1 February 2013.
- For further information and enquiries, call the toll-free hotline 1800-555 6363 between 8.00am and 5.00pm from Mondays to Fridays.
Source: HDB Press Release dated 27 Dec 2012
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