Friday, February 6, 2009

HDB to accept applications for Lease Buyback Scheme from Mar 1

SINGAPORE: From Mar 1, HDB will accept applications for the Lease Buyback Scheme (LBS).

LBS is a new monetisation option to help elderly households in three-room or smaller flats unlock their housing equity to meet their retirement needs.This was announced by National Development Minister Mah Bow Tan in Parliament on Friday.

Under this scheme, HDB will buy back the tail-end of the lease of their flats, leaving them with a shorter 30-year lease.

There will be also be a subsidy of S$10,000 from the government. This is in addition to the value of the housing equity unlocked from the shorter lease.

Of the total value, S$5,000 will also be given upfront as a lump sum. The remainder will be used to purchase an Immediate Annuity from CPF Board to provide a monthly stream of income for life.

Source: Channel News Asia - 6 Feb 2009

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