Enhanced Lease Buyback scheme

Since the National Day Rally, the lease buyback scheme has been in the limelight for the HDB owners. Here is the excerpt from HDB website about how the new Enhanced Lease Buyback scheme.


The Enhanced Lease Buyback Scheme (LBS) is an additional monetisation option to help low-income elderly households in 3-room and smaller flats to unlock part of their housing equity while continue living in their homes, and receive a lifelong income stream to supplement their retirement income.

Under the Enhanced LBS, the elderly flat owners sell part of their flat lease to HDB and retain a 30-year lease. Their proceeds from selling part of the flat lease will be used to top up their CPF Retirement Accounts (RAs). Flat owners will use their full CPF RA savings to purchase a CPF LIFE plan to give them a monthly income for life.

Q: Are There Any Restrictions?
During the 30-year lease

The Enhanced LBS is intended for those who wish to age-in-place. Hence, the 30-year lease term is non-transferable in the open market. The flat owner cannot sell the flat in the open market or sublet the whole flat.

Premature Termination of Lease

To terminate the lease prematurely, the flat owner can:

  • Return the flat to HDB, and
  • Receive a refund for the residual lease pro-rated on a straight-line basis
  • The CPF LIFE plan will not be terminated and will continue to provide a lifelong monthly income.
What if I outlive the 30-year Lease?

There may be cases where the flat owner outlives the 30-year lease. Such cases will be dealt with on an individual basis and appropriate housing arrangements will be provided to those flat owners who are not in a position to pay for the lease extension.

No elderly flat owner will be left homeless if he/she outlives the 30-year lease of the LBS flat.

What happens if I pass away within the 30-year lease?
  • Your spouse or child who is staying in the flat will be given the option of either staying in the flat for the balance of the 30-year lease, or returning the flat to HDB.
  • If your lease is terminated pre-maturely, HDB will reimburse the residual value of the lease based on straight-line depreciation to your beneficiaries.
  • The unused portion of your premium*, if any, will be refunded to your CPF accounts when you pass away. The monies will then be distributed to your nominees. If you have not made a nomination, the monies will be distributed to your family members according to intestacy law.

*The unused portion of the premium is the annuity premium less annuity payouts that you have received thus far. For example, if the annuity premium is $50,000 and you have received $250 monthly for a total of 10 months, the unused portion of the premium is $47,500.

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