Detached house plot in Tankomäki, Mellunkylä — plot 47369/1, Tankomäenkatu 18; area 462 m²; building rights 180 m² (gross floor area), Helsinki

The City of Helsinki leases, by open tender, nine (9) detached-house plots in district 47 (Mellunkylä), Tankomäki area, to the highest accepted price-competition bidder. Each plot has its own auction in which bids can be submitted. Bids may be made for each plot.

The city has the right to accept or reject bids made in the price competition.

Rent is determined on the basis of the accepted price-competition bid with a 3.5% yield target. Before signing the long-term lease agreement the tenant must obtain authorisation from the lessor to apply for a building permit. The authorisation is valid for a maximum of 1 year and a fee equal to two months’ rent is charged for that period. The authorisation is decided when granting the long-term lease. A long-term lease decision may be made after a building permit has been granted at the tenant’s request. If more floor area is built on the plots than the zoning plan’s main use permits, an additional purchase price/additional land rent will be charged on the excess in accordance with the terms of the draft deed/draft ground lease.

The tenant has the option to buy the plot for five (5) years from the start date of the long-term lease, provided a residential building has been completed to a condition approved by building control for occupation and the obligations under the long-term ground lease have been met. If the purchase option is not used, the lease term is approx. 80 years. The rent includes a so-called level adjustment, which means the annual rent for the residential premises is adjusted at each level adjustment by the average of the annual averages of the Helsinki metropolitan area old apartment price index (old apartment price index 2020=100) for the three (3) years preceding the adjustment (adjustment index). For each level adjustment, the base index value of the mentioned housing price index is the annual figure for the year preceding the start of the lease. The level-adjusted annual rent for the residential premises is calculated by dividing the adjustment index figure by the base index figure and multiplying the annual rent by the result. Thereafter the rent is adjusted every 10 or 20 years, at the tenant’s choice, in comparison with the above index. If a level adjustment cannot be performed at the scheduled time due to the absence of the housing price index, the new annual rent for the residential premises will be determined instead of the level-adjusted initial annual rent by using the average of the consumer price index figures for the year preceding the adjustment date (adjustment index), the amount of residential building right in the lease (k-m²) as entered in the lease or the higher realised amount, its market value in the lease (euros/k-m²) and a 4% yield requirement, and thereafter the rent development will be linked to changes in the consumer price index in accordance with the lease terms. The base index in this lease means the base index specified at the start of the lease term.

A reservation fee of €5,000 must be paid according to the invoice before the plot lease decision to apply for a building permit. The reservation fee will be credited against the long-term ground rents if the long-term lease proceeds. Otherwise the reservation fee is non‑refundable.

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

NOTE! The plots in the price competition are located in a groundwater area, and therefore ground-source (geothermal) heating cannot be installed on them.