Can family members can buy back lease balance upon parents’ death? Yes, if …

Family members who wish to buy the tail end of the lease sold to the Housing Development Board (HDB) as part of the Lease Buyback Scheme (LBS) upon the death of their parents are able to do so – depending on their eligibility to buy a HDB flat, said Minister of National Development Khaw Boon Wan in Parliament on Tuesday (Oct 7).

He said this in response to a question by Aljunied GRC MP Chen Show Mao, who asked if the Ministry of National Development (MND) would consider tweaking the LBS to allow children of the Scheme’s participants to buy back the balance of the lease at the original valuation price upon the demise of their parents.

Mr Khaw said that under the LBS, family members who are ineligible to buy a flat – such as those who already own a HDB flat – will be unable to buy the lease sold to the HDB.

The transaction will be conducted at the prevailing price, added Mr Khaw.

The Minister said that with the LBS, any remaining lease will be bequeathed to beneficiaries when the elderly owners pass on, and the beneficiaries can continue living in the flat for the remaining lease, or return the flat to the HDB and receive the residual value of the remaining lease.


Mr Khaw also suggested that households where lessees of the flat are not both at least 63 years old consider other options instead of using the LBS. These options include subletting a bedroom or the whole flat for rental income, or right-sizing to a smaller flat or Studio Apartment.

The Minister said that the qualifying age is set at the Central Provident Fund (CPF) draw down age, so that participants of the LBS can enjoy immediate payouts under CPF Life after topping up their CPF Retirement Accounts with the LBS proceeds.

He said this in response to a question by Jurong GRC MP David Ong, who asked about the rationale behind requiring that both lessees of the flat under the LBS must be at least 63 years old, and if the MND would review the criteria as it penalises couples with a large age difference.

Source : Channel NewsAsia – 7 Oct 2014

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