Lease Buyback Scheme: Who Qualifies and What You Get
Learn how seniors can sell part of their flat's lease back to the government to unlock cash while continuing to live in their home.
The Lease Buyback Scheme allows seniors to sell part of their home's remaining lease back to the government in exchange for a cash sum.
Who it's for
This scheme is specifically designed for seniors who are living in HDB flats. To be eligible, your current home must be a 3-room flat or a smaller unit. It is intended to help those in this specific housing category unlock the value of their property.
What you get
The primary benefit is the ability to receive a cash payment. By choosing to sell back a portion of your flat's remaining lease to the government, you can turn a part of your property's value into liquid cash. This can help provide extra funds for your daily expenses or other financial needs as you age.
What it costs you
While you receive cash, you are essentially trading a portion of your property's lease. However, you do not have to move out. You keep the right to continue living in your flat for the remainder of the lease period. You remain in your home, but you will own a smaller portion of the lease than you did before.
The catch to know
The most important thing to understand before applying is the impact on your property's future. Once you have completed the lease buyback, you cannot sell the flat on the open market. This means your home is no longer a traditional asset that you can sell to a private buyer later on.
How to apply
- Confirm that you are a senior living in a 3-room or smaller HDB flat.
- Determine how much of your lease you wish to sell back.
- Visit the official HDB portal to review the specifics and begin your application.