Detached house plot in Mellunkylä's Tankomäki, plot 47367/3, Tankomäenrinne 1, area 477 m², building rights 180 m², Helsinki

The City of Helsinki leases, by open bid competition, nine (9) detached house plots in block 47 (Mellunkylä), Tankomäki area, to the highest accepted bid. Each plot has its own auction lot where bids are made. Bids may be submitted for each plot.

The city reserves the right to accept or reject bids submitted in the price competition.

Rent is determined based on the accepted bid with a 3.5% return target. Before signing a long-term lease the tenant must obtain authorisation from the landlord to apply for a building permit. The authorisation is valid for up to 1 year and a rent equivalent to two months' rent is charged for that period. The authorisation is decided as part of the long-term lease. A long-term lease decision can be made after a building permit has been granted, at the tenant's request. If more floor area in accordance with the zoning plan's main use is built on a plot than the zoning plan indicates, an additional purchase price/additional land rent will be charged for the excess in accordance with the terms of the draft deed/draft land lease agreement.

The tenant may buy the plot for five (5) years from the start date of the long-term lease, provided that a residential building has been completed to the building control authority's approved occupancy condition and the obligations of the long-term land lease have been complied with. If the purchase option is not exercised, the lease term is approx. 80 years. The rent includes a so-called level adjustment (tasotarkistus), which means the annual rent for the residential area is adjusted at each level adjustment by the average of the annual averages of the capital region house price index (old apartment price index 2020=100) for the three (3) years prior to the adjustment (the adjustment index). For each level adjustment, the base index figure used is the annual figure of the capital region old apartment price index for the year preceding the start of the lease term. The level-adjusted annual rent is calculated by dividing the adjustment index figure by the base index figure and multiplying the annual rent by the resulting ratio. Thereafter the rent is adjusted every 10 or 20 years, at the tenant's choice, compared with the above index. If the level adjustment cannot be carried out using the above house price index because the index is unavailable at the time of adjustment, the new annual rent for the residential area is determined using an adjustment index based on the average of the consumer price index figures for the year preceding the adjustment, the amount of realised residential building rights (m²) specified in the lease or a higher realised amount, the market value per m² specified in the lease (EUR/m²) and a 4% return requirement. Thereafter rent development is tied to changes in the consumer price index in accordance with the lease terms. The base index in this lease is the base index determined at the start of the lease term.

A reservation fee of EUR 5,000 must be paid for the plot in accordance with the invoice before the short-term lease decision for applying for a building permit. The reservation fee will be credited against the long-term land rent if the long-term lease is implemented; otherwise the fee is non-refundable.

Detailed instructions can be found in the attached Price Competition Brochure.

NOTE! The plots in the price competition are located in a groundwater area; ground-source heat pumps cannot therefore be installed on them.