Lease Buyback Scheme

Under the Lease Buyback Scheme (LBS), launched on 1 Mar 2009, HDB will buy back the tail-end of the lease of flats, leaving the elderly with a shorter 30-year lease (from original the 99-year lease).

In addition to the value of the housing equity unlocked from the shorter lease, the Government will top up the amount with $20,000 (under Budget 2012).

Sale proceeds of the flat’s lease can be used to purchase the annuity plan from CPF.

But flat cannot be sold in the open market or sublet (whole unit) anymore.


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

- If the flat is returned < 5 yrs, HDB will recover a pro-rated amount of the $20k subsidy

- The Immediate Annuity plan will not be terminated and will continue to provide a lifelong monthly income

- If the flat was bought with CPF savings, the lessees would be required to refund the sale proceeds to make up their cohort Minimum Sum, up to the amount of CPF savings that they had withdrawn and the interest that would have been earned on the withdrawn savings into their Retirement Account