LEASE BUYBACK SCHEME

How it Works

If your household is eligible for the Lease Buyback Scheme (LBS), you will be able to:

• Sell the tail-end lease of your 3-room or smaller flat, 4-room flat, or 5-room or bigger
flat to HDB and receive an LBS bonus of up to $30,000, $15,000, or $7,500
respectively, depending on the top-up amount to your CPF Retirement Account (RA)
(refer to the details below)
• Use the net proceeds received through the LBS to top up your CPF Retirement
Account (RA) to the specified requirements as shown:

For applications received from 1 Jan 2023

Top-up Requirement for 1 Top-up Requirement for 2

Flat Owner’s Age
Owner or more Owners
Eligibility Age (currently 65) - 69 $198,800 $99,400

70 - 79 $188,800 $94,400

80 and above $178,800 $89,400

Note
For households with 1 owner, he or she will have to use the proceeds to top up the RA to the
current age-adjusted Full Retirement Sum (FRS).
For households with 2 or more owners, each owner will have to use his/ her share of the
proceeds to top up his/ her RA to the current age-adjusted Basic Retirement Sum (BRS).

Determining the LBS bonus

Your household will receive the full bonus as long as the total top-up to the flat owners’ RA is
$60,000 or more. If you are unable to do so, you will receive a pro-rated bonus of:

• $1 for every $2 CPF top-up for 3-room or smaller flats; or

• $1 for every $4 CPF top-up for 4-room flats; or
• $1 for every $8 CPF top-up for 5-room flats or bigger flats.

The household will not receive the LBS bonus if all owners have reached the Full Retirement
Sum (FRS) prior to joining the LBS and do not need to top up their CPF RA upon joining the
LBS.

Amounts in excess

After you have topped up the RA to the specified requirements shown above, you may retain
the proceeds in cash, up to a maximum of $100,000 per household. If there is any remaining
proceeds (after the top-up and setting aside of $100,000 cash), owners will have to use their
share of the remaining proceeds to further top up their respective RAs to the current FRS,
before they can retain any balance in cash as well.
CPF LIFE

Your full RA savings will be used to buy a CPF LIFE plan if you have at least $60,000 in your
RA after the top-up. You will not be eligible to join CPF LIFE if you are aged 80 and above.

Options for lease period

Your household will have the flexibility to choose the length of lease to be retained, based on
the age of the youngest owner. The duration of the lease retained determines the amount of
net proceeds unlocked.

Lease Retained
Age of Youngest Owner
Minimum Other Options

Eligibility Age (currently 65) - 69 30 35

70 - 74 25 30, 35

75 - 79 20 25, 30, 35

80 and above 15 20, 25, 30, 35

Illustrating an example

Joint Singapore Citizen (SC) owners aged 65 years old

Assumptions:

• 5-room flat held under joint tenancy

• No outstanding loan
• Balance lease: 65 years
• Market value: $520,000
• Choose to keep a 30-year lease
• Sell the tail-end 35-year lease to HDB for $219,300
Husband Wife

Citizenship SC SC

Age 65 65

Initial Retirement Account (RA) Balance $20,000 $5,000

Shortfall to Current Age-Adjusted Basic Retirement $79,400 $94,400

Sum (BRS)

A couple, both 65 years old, are joint owners of a fully paid 5-room flat worth $520,000, with
65-year remaining lease. They choose to keep a 30-year lease, and sell the tail-end 35-year
lease to HDB.