Lease Buyback Scheme Calculator Guide: CPF, Payout and Rental Rules

Last updated: 24 Jul 2026

The Lease Buyback Scheme sounds simple: sell part of your HDB lease back to HDB, keep living in the flat, and use the proceeds to improve retirement income.

In practice, the decision is not simple.

The key question is not "how much can HDB pay me?"

It is:

After CPF Retirement Account top-ups, cash limits, the LBS bonus, retained lease choice and rental restrictions, does the scheme make the household safer for the next 20 to 35 years?

This guide gives you a worksheet-style way to assess the Lease Buyback Scheme before you apply. It is written for Singapore HDB seniors and adult children helping parents compare LBS against right-sizing, renting out rooms, or keeping the flat unchanged.

It is not financial advice, and it is not an HDB quote. HDB must assess the flat and owner details before confirming the actual proceeds.

Quick Answer

The Lease Buyback Scheme may suit older HDB owners who want to stay in the same flat, have enough remaining lease to sell part of it back to HDB, and want to convert housing value into CPF retirement income.

It is usually a poor fit if the family still wants a normal resale exit, hopes to leave most of the lease value to children, may need to sell the flat soon, or wants to rent out the whole flat.

For a first-pass calculator, model these five numbers:

Then calculate:

HDB quoted proceeds from lease sold
- required CPF Retirement Account top-up
= remaining cash before cash cap and bonus treatment

Do this before comparing LBS with right-sizing in your 60s, renting out or selling a fully paid HDB, or using a CPF property pledge at 55.

What The Lease Buyback Scheme Actually Does

Under the Lease Buyback Scheme, eligible seniors sell part of the tail-end lease of their HDB flat back to HDB while keeping a shorter lease for themselves.

The owners continue living in the same flat for the retained lease period. The proceeds are mainly used to top up CPF Retirement Accounts, which can then support monthly CPF LIFE payouts where applicable.

This is different from selling the flat.

You are not cashing out the whole property. You are monetising part of the remaining lease while staying put.

That is why the scheme is best understood as a housing-retirement trade:

• You gain retirement resources without moving.
• You give up part of the flat's future lease value.
• You reduce future resale and family-inheritance flexibility.

Official reference: HDB Lease Buyback Scheme

Step 1: Check Basic Eligibility First

Do not start with payout dreams. Start with eligibility.

Based on HDB and CPF's current public guidance, the broad LBS eligibility filter includes:

Use this as a pre-check only. HDB's actual decision depends on your flat, ownership structure, lease balance and application details.

Official references: HDB Lease Buyback Scheme and SupportGoWhere: Lease Buyback Scheme

Step 2: Decide The Retained Lease

The retained lease is the part of the HDB lease you keep.

HDB's LBS framework is designed so the retained lease covers the youngest owner until at least age 95. In plain English, the younger the youngest owner, the longer the retained lease usually needs to be.

For example:

This is a planning illustration, not a substitute for HDB's retained-lease options.

The trade-off is direct:

• Retain a longer lease: more housing runway, lower lease-sale proceeds.
• Retain a shorter lease: more value sold back, less housing runway and flexibility.

Before choosing the shortest available lease, ask a practical question:

Would the younger spouse or owner still feel secure if they live much longer than expected?

Longevity risk is not theoretical. A plan that looks efficient at 65 may feel tight at 88 if health, caregiving or family needs change.

Step 3: Estimate CPF RA Top-Up Need

The proceeds from LBS are first used to top up the owners' CPF Retirement Accounts, subject to CPF rules.

CPF's current public explanation says the top-up target differs by ownership situation. For a one-owner household, proceeds may be used to top up the owner's RA to the applicable Full Retirement Sum level. For two or more owners, each owner's share may be used to top up each owner's RA to the applicable Basic Retirement Sum level.

For applications from 1 January 2026, CPF's LBS article shows age-adjusted top-up reference amounts:

This is where many families misread the scheme. The headline proceeds are not automatically paid as cash.

Use this worksheet:

In this simplified example, only $25,200 needs to be set aside for the CPF RA top-up before estimating remaining cash. Your actual CPF dashboard and CPF Board guidance should be used before applying.

Official reference: CPF: What is the Lease Buyback Scheme?

Step 4: Add The LBS Bonus Correctly

The LBS bonus is not the same thing as the Silver Housing Bonus.

The LBS bonus is tied to joining the Lease Buyback Scheme. Current public guidance states that the maximum LBS bonus depends on flat size:

The full bonus generally requires at least $60,000 of total CPF RA top-up. If the top-up amount is lower, the bonus may be pro-rated.

This matters because a family with a high existing RA balance may receive less bonus than expected. A family should not treat the maximum bonus as guaranteed.

For a separate move-based scheme, read HDB's Silver Housing Bonus page. SHB is for eligible seniors who right-size to a 3-room or smaller flat. LBS is for seniors staying in the same flat and selling part of the lease back to HDB.

Step 5: Calculate Cash, But Do Not Overstate It

After required RA top-ups, remaining proceeds may be taken in cash, subject to scheme rules and caps. Current CPF/HDB guidance refers to a household cash proceeds cap of up to $100,000 after required RA top-ups.

Use a conservative worksheet:

Do not treat this table as a prediction. The biggest number, the value of the lease sold, depends on HDB's valuation and your retained lease choice.

The useful part of the worksheet is the order of operations:

1. Confirm eligibility.
2. Choose retained lease.
3. Get HDB's proceeds quote.
4. Apply CPF RA top-up requirements.
5. Check cash cap and bonus.
6. Compare the result with moving, renting, or doing nothing.

Step 6: Test The Monthly Income Result

LBS should not be judged only by upfront cash.

For many seniors, the stronger benefit is monthly retirement income from CPF LIFE or CPF retirement payouts after RA top-up.

Ask:

• How much does the RA top-up improve monthly payouts?
• Will both owners receive enough monthly income?
• Is there still cash for renovation, medical costs and caregiving?
• Does the household need room-rental income on top of CPF payouts?
• Would right-sizing unlock a better outcome even after moving costs?

For broader CPF planning, see our CPF use for property 2026 guide and CPF accrued interest refund guide.

Step 7: Understand Rental Rules After LBS

This is a common trap.

LBS is meant to let owners continue living in the flat. After taking LBS, owners generally cannot rent out the whole flat.

They may be able to rent out spare bedrooms, subject to HDB's prevailing bedroom-rental rules, but this is not the same as turning the whole flat into an investment rental.

That means LBS works better for owners who want to stay put and maybe rent a spare room. It works less well for owners who want maximum future flexibility.

Before applying, compare:

Official reference: HDB LBS terms and conditions

LBS Versus Right-Sizing Versus Renting Out Rooms

Here is the practical comparison:

If the owner strongly wants to remain in the same home, LBS deserves serious consideration.

If the owner is willing to move and the current flat is large or valuable, right-sizing may produce a cleaner long-term outcome.

If the owner is uncertain, delay the irreversible decision and test a less permanent option first, such as bedroom rental, family support planning, or a CPF review.

Worked Example: 4-Room Flat Couple

Assume:

• Youngest owner: 70
• Flat type: 4-room
• Remaining lease: 58 years
• HDB retained lease option chosen: 30 years
• Tail-end lease sold back: 28 years
• HDB quoted proceeds: $160,000
• Owner A RA shortfall: $35,000
• Owner B RA shortfall: $20,000

Worksheet:

The household should then compare the result against:

• staying put without LBS,
• selling and moving to a smaller flat,
• renting out spare bedrooms,
• selling and living with adult children,
• or keeping the flat for future family flexibility.

The key lesson: even when the LBS result looks attractive, the family must discuss the retained lease and future exit options, not only the cash.

Common Mistakes

Mistake 1: Treating LBS As A Pure Cash-Out

It is not a normal sale. CPF RA top-ups and scheme rules come first.

Mistake 2: Ignoring The Younger Owner

If one spouse is much younger, the retained lease should be tested against that person's lifetime housing security.

Mistake 3: Confusing LBS Bonus With Silver Housing Bonus

The LBS bonus is for lease buyback. The Silver Housing Bonus is tied to right-sizing into a smaller flat. They solve different problems.

Mistake 4: Forgetting Whole-Flat Rental Flexibility

If you may want to move out and rent the whole flat later, LBS can become restrictive.

Mistake 5: Not Discussing Inheritance

Adult children may assume the flat remains a normal estate asset. LBS changes that expectation because part of the lease has been sold back.

When LBS Usually Makes Sense

LBS is more likely to fit when:

• the owners are sure they want to age in the same flat,
• the home is practical for ageing needs,
• the retained lease comfortably covers the younger owner,
• CPF monthly income improvement matters more than preserving resale value,
• adult children understand the trade-off,
• and the household does not need whole-flat rental flexibility.

It is less likely to fit when:

• the owner may right-size soon,
• the family wants to preserve open-market resale flexibility,
• the flat is unsuitable for ageing,
• the household expects to move in with children,
• or the financial benefit depends on receiving the maximum bonus.

Final Checklist Before Applying

Before applying for the Lease Buyback Scheme, prepare:

• latest HDB flat details and remaining lease,
• all owners' ages and citizenship status,
• household income estimate,
• current CPF RA balances,
• whether any owner has private residential property,
• family agreement on inheritance expectations,
• preferred retained lease length,
• expected need for room rental,
• alternative right-sizing budget,
• and a healthcare and emergency cash buffer.

Then ask HDB and CPF to confirm the numbers.

The right LBS decision should answer three questions at the same time:

1. Will the owners have enough monthly retirement income?
2. Will the retained lease feel safe for the younger owner?
3. Is the family comfortable giving up future lease and resale flexibility?

If all three answers are yes, the Lease Buyback Scheme can be a practical way to turn an ageing HDB lease into retirement security without moving.

If any answer is uncertain, pause and compare it against right-sizing or room rental before signing away part of the lease.

Official References

• HDB: Lease Buyback Scheme
• HDB: Understanding the LBS
• CPF Board: What is the Lease Buyback Scheme?
• HDB: Silver Housing Bonus
• SupportGoWhere: Lease Buyback Scheme

Related Guides

• Right-sizing in your 60s: lease decay, cash-out and monthly income
• Rent out or sell a fully paid HDB for retirement income
• CPF property pledge at 55 in Singapore
• CPF accrued interest refund when selling property