For HDB-owning Singaporeans approaching retirement who are house-rich but cash-poor, the Lease Buyback Scheme (LBS) is one of the most practical and underutilised options available. It allows eligible flat owners to sell a portion of their flat's remaining lease back to HDB — converting an illiquid housing asset into cash and CPF LIFE income — while retaining the right to live in the flat until death.
How The Lease Buyback Scheme Works
Eligible HDB flat owners sell part of the flat's remaining lease to HDB, retaining enough lease to cover the youngest owner to at least 95. The proceeds are channelled into the seller's CPF Retirement Account, up to the prevailing Enhanced Retirement Sum (ERS). The CPF RA balance then funds a higher CPF LIFE monthly payout. Any proceeds above the ERS top-up are paid in cash.
Who Is Eligible
At least one owner is aged 65 or above, the flat has been owned for at least 5 years, all owners must be Singapore Citizens, and all must have lived in the flat for a minimum period. The full eligibility criteria are available on HDB's website.
The Trade-Off
The trade-off is that the flat's remaining lease — and therefore its estate value — is reduced. For owners whose priority is their own retirement income rather than estate planning, this is often an acceptable and sensible trade.