677 applications received for Lease Buyback Scheme

677 applications received for Lease Buyback Scheme
Posted: 10 January 2011 2327 hrs

SINGAPORE: The HDB has received 677 applications for the Lease Buyback Scheme, as at 31 December 2010.

338 cases have been approved. Of these, 321 have started receiving their monthly payouts, while the remaining 17 will receive them by this month. The average monthly payout is S$622.

112 applications were rejected because the applicants did not meet the prevailing eligibility criteria. Another 50 applications were cancelled by the flat owners after re-consideration.

The remaining 177 applications are being processed.

Minister for National Development, Mr Mah Bow Tan, said this in a written reply to a parliamentary question on Monday.

The Lease Buyback Scheme was introduced on 1 March 2009 to allow elderly owners of HDB flats to monetise their units, by selling the tail-end of their flat lease back to HDB in return for cash in monthly payouts.

The government buys back at market valuation, leaving a 30-year lease for the household.

The owner may then use the cash to buy a CPF Life annuity, which assures a monthly income for life.

The scheme is aimed at low-income residents who need financial assistance and who are unable to buy a smaller flat or sublet a room.

Owners of 2- and 3-room flats are eligible, as well as those who previously owned a 4-room or bigger flat but are currently living in a 3-room or smaller flat.

- CNA/ir

- wong chee tat :)