lease Buyback ( LBS) .
1) The scheme is available to low-income Singapore citizens who own
three-room or smaller flats, with an outstanding mortgage loan of
S$5,000 or lower.
2) Applicants must be at least 62 years old.
How it works :
- The HDB will buy back the tail-end of the flat lease at market rate,
leaving the household with a remaining 30-year.
- Out of the S$10,000 government subsidy given to those on the
scheme; S$5,000 is paid up front as a lump sum.
- The other S$5,000, along with money for the lease, is used to buy
a new CPF Life anuity in the home owner's name.
- The amont of monthly income that a household receives from the
scheme depends on the market value of the flat, the amount of
remaining lease, and the age and gender of the applicant.
An example of a 62-year old retiree with a two-room, living in his
flat for more than 40 year, will be paid more than S$400 a month
for the rest of his life, in exchange for the tail-end of the 99-year
lease of his flat.
The LBS targets those without the option of living in a rental flat,
downgrading to a smaller flat, sub-letting their entire flat, or relying
on family support.
What is your views on this scheme ?
We welcome your comments here.
