Last Updated on March 26, 2026 by Yolly Del Prado
The HDB Lease Buyback Scheme (LBS) is one of the few ways senior citizens in Singapore can generate retirement income directly from their home. Under LBS, eligible seniors can sell part of their flat’s lease back to HDB.
However, not every HDB owner qualifies, and the proceeds you receive depend on factors like your flat type and the lease length you choose to retain. Here’s a full breakdown.
| TL;DR / Key Summary: – Under the LBS, seniors aged 65 and above can sell part of their flat’s lease to HDB. – The LBS cash bonus ranges from $7,500 to $30,000, depending on flat type and CPF Retirement Account top-up amount. – You must retain a minimum lease length of 15 to 35 years, depending on the age of the youngest owner. – LBS is irreversible — once the lease is sold to HDB, you cannot sell, sublet, or transfer ownership of your flat. |
Table of Contents:
- What is the Lease Buyback Scheme?
- Are You Eligible for the Lease Buyback Scheme?
- How Do Lease Buybacks Work?
- How to Determine Your Remaining Lease Period?
- How Much Do You Need to Top Up to Your CPF RA Under LBS?
- How to Calculate the Amount of LBS Bonus You Can Receive?
- How Do You Actually Earn Money Through the Lease Buyback Scheme?
- The Lease Buyback Scheme Process in 5 Steps
- Why is the Lease Buyback Scheme Important?
- Does Ohmyhome’s In-house Property Agent Recommend It?
- Want to Sell Your Old HDB Flat Instead?
- Frequently Asked Questions About Lease Buyback Scheme (LBS) in Singapore
What is the Lease Buyback Scheme?
The Lease Buyback Scheme or LBS is a government scheme introduced by the Housing and Development Board (HDB) to help seniors monetise their flat for retirement without selling it or moving out. If you’re 65 or older and own an HDB flat, you can sell the tail end of your flat’s lease back to HDB.
The proceeds go toward topping up your CPF Retirement Account (RA), and those savings are then used to join CPF LIFE, which pays you a monthly income for life.
Are You Eligible for the Lease Buyback Scheme?
You must meet these requirements to qualify for the Lease Buyback Scheme:
| Criteria | Eligibility |
| Age | All owners must be 65 years old or older |
| Citizenship | At least one owner must be a Singapore Citizen |
| Gross Monthly Household Income | $14,000 or less |
| Flat Type | All flat types, except for short-lease flats, HUDC and Executive Condominiums |
| Property Ownership | Must not be owning another property at the same time |
| Minimum Occupation Period | 5 years or 10 years for Prime Location Public Housing (PLH) flats |
| Minimum Lease | At least 20 years of lease to sell |
How Do Lease Buybacks Work?
Let’s say, you and your partner are both 66-year-old empty-nesters who own a fully-paid 5-room flat, and it has a remaining lease of 65 years.
Under the Lease Buyback Scheme, you can choose to sell 35 years of your lease to HDB, keeping the remaining 30 years of the lease, and get a bonus! The LBS bonus depends on the type of flat you own, though.
Since you own a 5-room flat, the LBS bonus you will receive can be up to $7,500. 4-room flats, on the other hand, can receive up to $15,000 and $30,000 for 3-room flats.
In addition to the bonus, the proceeds will be used to top up your CPF Retirement Account (RA).
If there is only one flat owner, the RA top-up will be up to the current age-adjusted Full Retirement Sum (FRS). But for households with two owners, each owner will have to use his or her share of the proceeds to top up his or her RA to the current age-adjusted Basic Retirement Sum.
You can only pocket the cash left after you’ve topped up your CPF RA. You may retain up to a maximum of $100,000. But if there are still some remaining proceeds after the top-up and setting aside of the $100,000 cash, you are required to use you and your co-owner’s share to further top up your respective RAs to the current FRS before you can keep the remaining balance in cash.
How to Determine Your Remaining Lease Period?
You have flexibility in choosing how much lease to retain, but the options available to you depend on the age of your youngest flat owner. Keep in mind that the longer the lease you retain, the less you unlock in proceeds, but the more housing security you have.
| Age of youngest HDB flat owner | Minimum lease retained | Other options |
| 65 – 69 | 30 | 35 |
| 70 – 74 | 25 | 30, 35 |
| 75 – 79 | 20 | 25, 30, 35 |
| 80 and above | 15 | 20, 25, 30, 35 |
How Much Do You Need to Top Up to Your CPF RA Under LBS?
The amount you’re required to top up to your CPF RA depends on your age and how many owners the flat has. These figures apply to applications received from 1 January 2026.
| Age of Flat Owner | Top-up Requirement for 1 Owner | Top-up Requirement for 2 or More owners |
| 65 – 69 | $220,400 | $110,200 |
| 70 – 79 | $210,400 | $105,200 |
| 80 and above | $200,400 | $100,200 |
How to Calculate the Amount of LBS Bonus You Can Receive?
The Lease Buyback Scheme bonus is paid in full when the total CPF Retirement Account top-up across all flat owners in your household amounts to at least $60,000. If the combined top-up does not meet that threshold, a pro-rated bonus will be calculated based on your flat type instead:
- $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.
How Do You Actually Earn Money Through the Lease Buyback Scheme?
Well, if you have at least $60,000 in your RA after the top-up, you can use those savings to buy a CPF LIFE plan, which will provide retirees with a monthly income for life. (Note: Those aged 80 years old and above are not eligible to join CPF LIFE.)
The Lease Buyback Scheme Process in 5 Steps
| Step 1 | Sell part of your flat’s lease to HDB |
| Step 2 | Choose to retain the length of your remaining lease based on the age of the flat’s youngest owner |
| Step 3 | Receive a bonus of up to $30,000 for a 3-room or smaller flat, $15,000 for a 4-room flat and $7,500 for a 5-room or bigger flat |
| Step 4 | Use the net proceeds to top up your CPF RA |
| Step 5 | Use your RA savings to join CPF LIFE to receive monthly payouts no matter how long you live |
Why is the Lease Buyback Scheme Important?
Retirement funds – or the lack thereof – is a pressing issue in Singapore as more and more of the elderly population find themselves facing retirement without a financial safety net and/or insufficient funds in their CPF RA.
The LBS was then introduced by HDB as a way to help seniors earn cash without parting ways with their beloved home. Homeowners who participate in the scheme can still rent out spare rooms for additional income.
Does Ohmyhome’s In-house Property Agent Recommend It?
Our Ohmyhome CEA-licensed property agent emphasised that the scheme will not necessarily benefit everyone’s circumstances. He explained that the LBS would not be an advantage for empty-nesters who are willing to part with their home and right-size to a smaller unit.
However, it is definitely an avenue to consider should the discerning elders have chronic/mobility-restrictive conditions and/or formed a tightly-knit community amongst their neighbours that would prevent them from buying a new home.
He recommends that it is worth considering other possible options such as right-sizing to a smaller flat if you’re willing to relocate or rent out your property to tenants. After all, you won’t be able to put your flat on the market again after LBS.
Want to Sell Your Old HDB Flat Instead?
Sell your home for a high price in no time, hassle-free. Our Super Agents are CEA-certified and among the Top 1% in Singapore. With more than 8,000 happy customers served, we’ve garnered 4-star ratings on both Facebook and Google! Because at Ohmyhome, we‘re always by your side, always on your side.
Drop us a message on WhatsApp or via our Live Chat at the bottom, right-hand corner of the screen to reach any of our Super Agents.
Frequently Asked Questions About Lease Buyback Scheme (LBS) in Singapore
1. What are the disadvantages of lease buyback?
The main disadvantage of the Lease Buyback Scheme is that once you sign up, you can no longer sell your flat on the open market or rent it out as a whole unit. The lease you sell is also permanent, you cannot buy it back. For seniors willing to relocate or right-size, selling outright may yield better financial returns.
2. How is the buyback price determined?
The buyback price is determined by HDB based on the current market value of your flat and the proportion of the lease being sold. A licensed valuer assesses your flat’s value at the point of application, and the price is calculated accordingly. The longer the lease you sell and the higher your flat’s market value, the more proceeds you can expect to receive.
3. Can I negotiate the buyback price?
The buyback price under the Lease Buyback Scheme is not negotiable. It is determined by HDB based on the market value of your flat and the length of lease being sold. Since HDB sets the price through an official valuation process, there is no room for individual price negotiation as there would be in a typical open market sale.
+65 9755 9283 
hello@ohmyhome.com 
