Seniors on Lease Buyback Scheme whose flats undergo Vers to be reimbursed with remaining lease in mind

SINGAPORE – Seniors who sell part of their flat’s leases back to HDB under the Lease Buyback Scheme, but later give up the flat because of the Voluntary Early Redevelopment Scheme (Vers), will be reimbursed taking into account the value of their remaining retained lease.

Under such circumstances, “the Government will ensure that (the senior) receives a fair package, which takes into account the value of the remaining retained lease of his flat”, said National Development Minister Chee Hong Tat in a written parliamentary reply on Oct 15.

He was responding to questions from Mr Foo Cexiang (Tanjong Pagar GRC), who had asked if flats with owners under the Lease Buyback Scheme will still qualify for Vers.

The Lease Buyback Scheme, which was launched in 2009, allows those aged 65 and older to supplement their retirement income by selling part of their flat’s lease back to HDB.

Under Vers, the Government takes back flats before the end of their 99-year lease to redevelop them and meet housing needs.

Home owners of flats in selected precincts that are aged about 70 and above will choose if they want their homes to be acquired by the Government for this purpose, before their leases run out.

Vers is likely to begin with

a few sites in the first half of the 2030s,

and Mr Chee previously said the aim in this term of Government is to develop and flesh out the Vers framework. The next general election must be called by 2030.

Mr Foo had also asked how many households opted for the Lease Buyback Scheme between January and June 2025.

Mr Chee said 1,170 senior households joined the scheme in the first six months of 2025.

In August 2024, the Housing Board said the take-up rate of the Lease Buyback Scheme has remained steady at an average of 1,680 households annually over the last five years. It said then that the vast majority of households under the scheme

received between $100,000 and $300,000 in proceeds

for selling part of their flat’s lease back to HDB.

Households can choose to retain lease lengths from 15 to 35 years – in increments of five years – as long as the remaining lease covers the flat’s youngest owner until the age of 95.

Mr Chee said that Vers should not factor into seniors’ considerations when they are deciding if they should join the Lease Buyback Scheme.

“Seniors who would like to supplement their retirement incomes should continue to consider (the) Lease Buyback Scheme as a possible option, without worrying about whether their block will go through Vers,” he said.

He had previously said that in the coming years, the Government will set parameters to identify possible Vers sites, ensure sufficient homes are ready in time for residents involved in Vers to relocate to, and work out a fair package for them.