LSB attracts more leaseholders

lease Buyback Scheme (LBS) of the Housing Board attracts some 178 households since its application is launched last month. The government is also planning to extend the programme to include four-room and five-room units.

During the outreach session for LBS, which was held yesterday in Ang Mo Kio, Prime Minister Lee Hsien Loong stated that joining the scheme’s plan “is an important decision, which flat owners should consider very carefully”.

“Therefore, it is more important to help them understand the scheme so that they can make an informed decision”, PM Lee added.

The plan, which was first introduced by PM Lee during the 2007 National Day Rally, aims to help elderly to monetise their units.

Under the said scheme, HDB will buyback the last part of their lease on a market valuation, leaving only 30-year rent for flat owner. So for instance, the remaining lease of one flat is 70 year, HDB will purchase 40 years of the rent from household.

The government will pay at a market rate for the share they buy and the money will go to the flat’s CPF Life annuity under the owner’s name.

In addition of the government’s scheme, a $10,000 subsidy will also be given to anyone who signs up and becomes eligible for the scheme. Half of the money will be immediately given in cash, while the other half will go into their CPF Life annuity.

If leaseholders dies before they reach the 30-year period, the family members who share the flat with them can live there for the remaining period, or they can return and refund the flat to HDB. Also, if they have beneficiaries for the annuity plan, they will receive a full refund for the annuity plan’s unused premium.

Prior to the opening of LBS scheme, HDB also conducted five outreach programmes that “managed to reach out to about 81 percent of the eligible households”.

The programme becomes available to almost 25,000 low-income householders within the country, and to those whose age at present 62 years old and above as well as to owners of a two- to three-room HDB flats

According to PM Lee, out of the total numbers, 2,800 are located in Ang Mo Kio GRC and 800 in Yio Chu Kang.

He also added that several elderly who own a 4 or 5-room flats are requesting to join the programme. “This is something we can consider later on”, said PM Lee.