Detached house plot in Mellunkylä, Tankomäki, plot 47369/2, Tankomäenkatu 20, area 462 m², building right 180 k-m², Helsinki

The City of Helsinki is leasing nine (9) detached-house plots in plot 47 (Mellunkylä), Tankomäki area, by open bidding. A separate auction has been opened for each plot; bids may be submitted 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 bid with a 3.5% yield target. Before signing the long-term lease, the tenant must obtain authorisation from the lessor to apply for a building permit. The authorisation is valid for up to 1 year and a rent equivalent to two months’ rent will be charged for that period. The authorisation is decided when the long-term lease is agreed. A long-term lease decision may be made after the building permit has been granted, at the tenant’s request. If the plots are built with more floor area in accordance with the main use of the zoning plan than is marked for the plot, an additional purchase price/additional land rent will be charged for the excess in accordance with the terms of the draft deed/land lease draft.

The tenant has the option to buy the plot for five (5) years from the start date of the long-term lease provided that a residential building has been constructed and approved for use by building control and the obligations under 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, which means that the annual rent for the residential area is adjusted at each level-adjustment date by the average of the annual means of the last three (3) years of the Helsinki metropolitan area price index for existing apartments (existing apartment price index 2020=100) (adjustment index). For each level adjustment, the base index used is the index value for the year preceding the start of the lease. The level-adjusted annual rent is calculated by dividing the adjustment index by the base index and multiplying the annual rent by the resulting factor. 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 due to the absence of the above-mentioned apartment price index at a level-adjustment date, the new annual rent for the residential area 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 that level-adjustment date (adjustment index), the amount of residential building right in the lease (k-m²), its market value (€/k-m²) and a 4% yield requirement, and rent development will be tied to changes in the consumer price index in accordance with the lease terms. The base index in this lease is the base index specified at the start of the lease.

A reservation fee of €5,000 must be paid by invoice before the decision to lease the plot in order to apply for a building permit. The reservation fee will be credited against the rents of the long-term land lease if the long-term lease is realised. Otherwise the reservation fee will not be refunded.

More detailed instructions are in the attached Price Competition Brochure.

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