Valuation of Lease in Enhanced Lease Buyback Scheme

Mr Chen Show Mao asked the Minister for National Development whether the Ministry will consider tweaking the Enhanced Lease Buyback Scheme to allow the children of the Scheme's participants to buy back the balance of the lease that was sold back to the HDB, at the original valuation price upon the demise of their parents in order to further address the bequest motive and other impediments to taking up the Scheme.

The Lease Buyback Scheme (LBS) is one of several options that elderly homeowners can consider, depending on their preference and circumstances. Under the LBS option, when the elderly owners pass on, any remaining lease will be bequeathed to the beneficiaries. The beneficiaries can either continue living in the flat for the remaining lease, or return the flat to HDB and receive the

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residual value of the remaining lease.

Whether the children can buy the tail end of the lease already sold to HDB would depend on their eligibility to buy a HDB flat. For example, they may already be flat owners and under current rules will not be allowed to own a second HDB flat. In any case, any such transaction would have to be conducted at the prevailing price.