Four key changes in HDB's Lease Buyback Scheme

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Four key changes were announced for the Lease Buyback scheme on Wednesday (Sep 3).

Firstly, the scheme will be extended to four-room flats. This means that 75 per cent of elderly households will be covered - up from 35 per cent currently. Four-room households will also get a S$10,000 cash bonus when they participate.

Secondly, the income ceiling for those participating in the scheme will be raised from S$3,000 to S$10,000. Authorities said this will allow seniors who are still working or living with their family to qualify for the scheme.

Thirdly, the CPF top-up requirement for households with two or more owners will be relaxed. Households with two or more owners will no longer be required to top up their CPF Retirement Accounts to their full age-adjusted prevailing Minimum Sum. Instead, they only need to top up to half of the Minimum Sum, and have the option to withdraw more cash upfront.

Lastly, seniors can choose the length of lease to retain. Currently, elderly owners who qualify for the scheme can sell part of their flat’s 99-year lease back to the Housing and Development Board (HDB) in return for monthly payouts, keeping only a 30-year lease.

When the change kicks in, those aged 70 to 74 will have the option of a 25-year lease, while those aged 75 to 79 will have the option of a 20-year lease. Those aged 80 and above will have the option of a 15-year lease. Seniors can choose to retain up to a maximum of 35 years of lease.