Detached house plot in Mellunkylä's Tankomäki, plot 47369/3, Tankomäenkatu 22, area 462 m², building entitlement 210 k-m², Helsinki

The City of Helsinki is leasing, by open price-competition, nine (9) detached house plots in the Tankomäki area of district 47 (Mellunkylä). Each plot has its own auction lot where offers are made. Bids may be submitted for each plot.

The City has the right to accept or reject the bids submitted in the price competition.

The plot rent is set in the price competition based on the accepted purchase offer, with a 3.5% yield target. Before signing a long-term lease, the tenant must obtain authorisation from the lessor to apply for a building permit. The authorisation is valid for up to one (1) year and a rent corresponding to two months is charged for that period. The authorisation is decided in connection with the long-term lease. The long-term lease decision may be made after the building permit has been granted, at the tenant’s request. If more floor area is built on the plots than is indicated in the zoning plan as the main permitted use, an additional purchase price/additional land rent will be charged on the excess area according to the terms of the draft deed/ground lease draft.

The tenant has the option to purchase the plot for five (5) years from the start date of the long-term lease provided that a residential building has been completed on the plot to a condition approved for use by building control, and that the obligations under the long-term ground 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, meaning that the annual rent for the residential area is adjusted at each level-adjustment moment using the average of the annual mean values of the capital region’s housing price index for the three (3) years prior to the adjustment (old apartment price index 2020=100) (adjustment index). For each level adjustment the base index value used is the capital region’s annual old-apartment price index value for the year preceding the start of the lease term. The level-adjusted annual rent for the residential area is calculated by dividing the adjustment index value by the base index value and multiplying the annual rent by the resulting ratio. Thereafter the rent is adjusted every 10 or 20 years at the tenant’s choice by comparison with the index above. If the level adjustment cannot be carried out due to the absence of the housing price index at a given adjustment time, the new annual rent for the residential area will be determined instead by using the annual mean value of the consumer price index for the year preceding that adjustment moment (adjustment index), and by applying the leased or a higher realised residential building right (m²) stated in the lease, its market value (EUR/m²) and a 4% yield requirement; thereafter rent development is linked to changes in the consumer price index in accordance with the lease terms. The base index referred to in this lease is 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 enable application for a building permit. The reservation fee will be credited against rents of the long-term ground lease if the long-term lease is realised. Otherwise the reservation fee is not refunded.

Detailed instructions are found in the attached Price Competition brochure.

NOTE! The plots in the price competition are located in a groundwater protection area and therefore ground-source heat (geothermal) cannot be used.