New Lease Buyback Scheme Takes Effect From 1 April 2015

New Lease Buyback Scheme Takes Effect From 1 April 2015

Date issued : 31 Mar 2015

 In September 2014, the Government announced four enhancements to the Lease Buyback Scheme (LBS), in response to feedback received during the Our Singapore Conversation on Housing.

2The new LBS will benefit more elderly households and provide greater flexibility to suit different preferences and needs. These enhancements will come into effect from 1 April 2015:

(a) Extending the scheme to 4-room HDB flats: With this extension, the LBS will cover 75% of elderly HDB households compared to 35% currently. 4-room households will receive up to $10,000 cash bonus per household when they participate in the LBS. This is on top of the proceeds they receive from selling the tail-end lease of their flat to HDB.
(b) Raising the income ceiling: The income ceiling for participating in the LBS will be raised to $10,000, from $3,000 per month. Similarly, the income ceiling for the Silver Housing Bonus (SHB) scheme will be raised from $3,000 to $10,000. 
(c) Lowering the CPF top-up requirement for households with two or more owners: For these households, each owner will only need to top up his or her CPF Retirement Account (RA) to the current Basic Retirement Sum (age-adjusted), instead of the current Full Retirement Sum (age-adjusted), hence allowing more upfront cash.
(d) Offering flexibility in the length of lease to be retained: Elderly households can choose the length of lease to be retained, ranging from 15 to 35 years (in 5-year increments), subject to the lease covering the youngest owner till age 95.

Details on the new LBS and other monetisation options available are found in Annex.  (PDF 230KB)

When and How To Apply

3From 1 April 2015, applicants can enjoy the new LBS by submitting an online application via the HDB InfoWEB. Those who need help completing the application may approach any HDB Branch for assistance.

4After the LBS application is submitted, HDB will conduct a personalised one-to-one financial counselling session for each household. The session seeks to help them better understand the LBS and the other monetisation options available, so that they can decide on an option that will best suit their priorities and retirement needs.

Enquiries

5For more information on the LBS, the public can call HDB Branch Service Line at 1800-225-5432 between 8.00am and 5.00pm from Mondays to Fridays.

- wong chee tat :)

Lease Buyback Scheme (LBS) - English

- wong chee tat :)

Lease Buyback Scheme (LBS) - Mandarin

- wong chee tat :)

Sabana REIT to buy AMD’s Chai Chee Lane property for $68.2 mil in sale-and-leaseback deal

Sabana REIT to buy AMD’s Chai Chee Lane property for $68.2 mil in sale-and-leaseback deal

Written by The Edge  

Friday, 23 August 2013 14:59

The manager of Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (Sabana REIT) said it plans to buy a property located at 508 Chai Chee Lane, Singapore 469032 from Advanced Micro Devices (Singapore) Pte Ltd for $68.2 million.

The property is a seven‐storey light industrial building with two basement storeys, located at Chai Chee Lane, off Bedok North Road and Bedok North Avenue 1. Completed on 2 December 2002 with a built‐up gross floor area of about 327,574.70 square feet, the property is a JTC leasehold estate of 30 + 29 years tenure commencing from 16 April 2001. Land area of the site is around 113,689.50 square feet, with a remaining tenure of 46.5 years.

The price comprises $59.5 million for the property as well as $7.7 million upfront land premium payable to JTC for the balance of the first term (about 17.5 years) on JTC's approval and other costs.

If the acquisition follows through, both parties will enter into a lease agreement in which Advanced Micro Devices will lease back at least 50% of the total rentable area of the property.




- wong chee tat :)

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 :)