The eligibility conditions are well-defined and all of the details are available on the official HDB website.
In order to qualify for participation in the Lease Buyback Scheme, apartment owners have to be Singaporean and the youngest household member should be 64 or older.
There are a few additional eligibility requirements – the household income has to be 10,000 dollars or less, there should be no concurrent ownership or a second property belonging to the household and all owners should have been living in the HDB flat for at least five years.
A final condition exists and it states that the owner should have at least 20 years of lease to sell to the HDB for proceeds.
The application procedure is relatively simple and a few options are available for added convenience.
HDB apartment owners can make an e-appointment. For the purpose, HDB website registration is required. Once a registered user is in their profile, an e-appointment can be scheduled at a suitable HDB branch.
On the day of the appointment, the HDB reps will provide more information about the monetisation options under the LBS and they’ll also provide some assistance for the calculation of the total amount that the apartment’s owner will be entitled to.
Next, the property owner will need to submit their LBS participation application. More assistance will be provided at the HDB branch. Once the necessary documents are submitted, the HDB will appoint a valuer to conduct a market valuation of the flat. Once the value of the lease retained and the tail-end lease to be sold to the HDB are calculated, a financial counselling session will be scheduled. The aim of the session is to shed more light on the full terms and conditions of participating in the Lease Buyback Scheme.
If you are comfortable with the terms and conditions, you’ll be invited to sign the legal documents finalising your participation in the program. The entire process will take approximately two months.
Keep in mind there will be some fees to pay during the application. These include 100 dollars in administrative charge fees and legal fees that can range between 300 and 500 dollars.
Anyone who needs more information about the LBS and the new conditions effective as of January 2019 can call the HDB Branch Service Line at 1800-225-5432. Service reps will be there to answer questions from 8am to 5pm on workdays.