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Can I use CPF for a property with less than 60 years lease

By Paul Ho, MBA Macq., B.Eng(Hons), ACTA Certified Trainer

Can I use CPF for a property with less than 60 years lease

Can I use CPF for a Property with Less than 60 Years Lease remaining?

The question on everyone’s mind is, should I buy a property that has 70 years lease left? Will I be able to sell it if I stayed in it for 10 years?

Or for that matter, should I even buy a property that has 60 years or less than 60 years of lease remaining?

Some people got the impression that they cannot get a home loan for a property less than 60 years lease. This is not true.

CPF Allowance
Figure 1: Allowable CPF usage for properties below 60 years

The answer is yes, if the property lease is more than 30 years. Then you add your age + property remaining lease together, if it is more than 80 years, yes you can use CPF.

Scenario: -

Buyer = 40 years old
Current Property remaining lease = 50 years

• In this case, 40+50 = 90, hence CPF can be used.

Remaining Lease
Figure 2: Determining How much CPF can be used for Properties less than 60 years lease

The numerator requires, “The remaining lease of the property when owner is 55”.

Use 55 years – Current buyer age 40 = 15 years.
Remaining property lease when owner is 55 = 50 years – 15 years = 35 years.

Valuation Limit
Figure 3: Calculating how much CPF OA can be used for a residential property with less than 60 years lease

Based on the above scenario, you can still use CPF up to 70% of the valuation limit (VL), mix it with some cash installment, financing the property should not be an issue.

While the property comes with shorter lease, lesser CPF can be used, but often these properties also comes with cheaper price, bigger layout and are located in established mature neighbourhood.

The potential for selective en-bloc redevelopment (SERS) for HDB flats is there if these units are required for development.

For private residential units, the en-bloc potential very much depends on whether Singapore Land Authority can approve a lease top up to 99 years. If a lease top-up is possible (subjected to differential premium and fees), then this property could still be sold en-bloc.

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Paul holds an a B.Eng(Hons) Aberdeen University (UK) and a Masters of Business Administration (MBA) from Macquarie Graduate School of Business (MGSM) Australia. He also serves as current President of Macquarie University Alumni Association of Singapore and Treasurer of Australian Alumni Singapore (AAS).

He is founder of His articles have been syndicated/featured on STproperty, iProperty, BTInvest, TheEdgeProperty, Propwise, Propquest, Yahoo, TheOnlineCitizen and Propertyguru amongst many other sites. He has also been quoted on South China Morning Posts, Xinmin daily 新民日报 and interviewed on Channel 8 狮城有约, 938 Live.

He has given speeches, trainings and/or seminars at NUH Lunch time talk, iProperty, David Poh and Associates, Getty Goh’s Ascendant Asset property, NTU (Guest Lecture on SEO), Panel discussions at GPS Alliance, C&H, Skillup, British Alumni, Propertyguru, FPAS just to name a few.

He is passionate about helping people enhance their wealth and in making money work harder for them.

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