The LBS is an additional monetisation option for elderly households living in 4-room or smaller flats. This scheme helps you to unlock part of your housing equity as you continue to live in your flat and benefits you in your retirement years with a lifelong income stream.
Here, you will find all the information you need on the eligibility criteria, how the scheme works, FAQs, and the application procedure.
If you are looking to supplement your retirement income, the LBS is an additional monetisation option you can consider.
Under this scheme, you can sell part of your flat lease to HDB and choose to retain the length of lease based on the age of the youngest owner. Your proceeds from selling part of the flat lease will be used to top up your CPF Retirement Account (RA). You can then use your full CPF RA savings to purchase a CPF LIFE plan which will provide you with a monthly income for life.
Find out more about the restrictions that apply to the LBS in situations where you terminate your lease prematurely or if you were to live beyond the lease period.
During the lease term retained
As the LBS is meant for those who wish to age-in-place, the lease term is non-transferable in the open market. You may not sell the flat in the open market or sublet the whole flat.
Premature termination of lease
If you wish to terminate the lease prematurely, you can:
- Return the flat to HDB
- Receive a refund for the remaining lease pro-rated on a straight-line basis
Your CPF LIFE plan will not be terminated and will continue to provide a lifelong monthly income.
Outliving the lease term
If you were to outlive the lease of your flat, you will not be left homeless. HDB will look into the circumstances of your case, considering your family support, health condition and financial status to determine the appropriate housing arrangement for you.
Passing away within the lease term
In this situation, your spouse or child who is staying in the flat will be given the option to:
- Stay in the flat for the balance of the lease term; or
- Return the flat to HDB
If your lease is terminated pre-maturely, HDB will reimburse the remaining value of the lease to your beneficiaries, based on a straight-line depreciation.
The unused portion of your premium*, if any, will be refunded to your CPF accounts when you pass away. The monies will then be distributed to your nominees. If you have not made a nomination, the monies will be distributed to your family members according to intestacy law.
*The unused portion of the premium is the annuity premium (excluding annuity payouts that you have received thus far). For example, if the annuity premium is $50,000 and you have received $250 monthly for a total of 10 months, the unused portion of the premium is $47,500.
HDB Branch Service Line
You can call our HDB Branch Service Line at 1800-2255432 between 8am to 5pm from Mondays to Fridays.
How to Apply
To apply for LBS, visit My HDBPage and log in using your NRIC number and SingPass. Once you have logged in successfully, proceed to My Flat > Purchased Flat – Flat Details.
You might want to find out more about the application procedure and fees payable first.