SINGAPORE: The Lease Buyback Scheme (LBS) will be extended to all HDB flat types from Jan 1, 2019, the Housing Development Board (HDB) said.
LBS allows older flat owners to sell part of their flat’s lease back to the Housing and Development Board (HDB) to boost their retirement income.
Previously available to only those in four-room or smaller HDB flats, National Development Minister Lawrence Wong announced in August that it would be made available to all HDB flats.
With the extension, senior owners of five-room and larger flats can take up the LBS to monetise their flat, HDB said.
The board expects about 34,000 households to benefit from this extension, bringing the total number of LBS-eligible households to about 130,000.
Households in five-room and larger flats that participate in the LBS will receive a cash bonus of up to S$5,000 on top of the proceeds from selling part of their flat's lease back to HDB.
Those with four-room HDB flats can get up to S$10,000 and those in three-room flats, up to S$20,000.
After taking up the LBS, seniors may still rent out spare bedrooms to supplement their retirement income.
HDB also highlighted other housing-related options for seniors to supplement their retirement income further.
If they do not take up the LBS, they can rent out their whole flat or they may right-size to a smaller flat with the option of applying for the Silver Housing Bonus.
Seniors who are interested in taking up the LBS or any housing monetisation option can do so by making an appointment at an HDB branch, the board said.
For more information on the LBS, the public can visit HDB’s InfoWEB or call HDB at 1800-225-5432 between 8am and 5pm from Mondays to Fridays.