Detached house plot in Mellunkylä's Tankomäki, plot 47369/5, Tankomäenkatu 26, area 462 m², building right 180 m², Helsinki

The City of Helsinki is leasing, by open tender to the highest accepted competitive bid, nine (9) detached house plots in Tankomäki in district 47 (Mellunkylä). Each plot has its own auction where bids are submitted. Bids may be made for any of the plots.

The city has the right to accept or reject bids submitted in the tender.

The rent is determined on the basis of the accepted competitive bid using 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 1 year and a rent equivalent to two months’ rent will be charged for that period. The authorisation will be decided when the long-term lease is agreed. A long-term lease decision can 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 main use indicated in the local detailed plan, 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 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 completed in a condition approved for occupation by building control 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): the annual rent for the residential area is adjusted at each level adjustment by using the average of the annual means of the Greater Helsinki housing price index for old apartments (2020=100) point values for the three (3) years preceding the adjustment (adjustment index). For each level adjustment the base index point used is the annual point value of the Greater Helsinki old-apartment price index for the year preceding the start of the lease. The level-adjusted annual rent is calculated by dividing the adjustment index point by the base index point and multiplying the annual rent by the result. After that, the rent is adjusted every 10 or 20 years, at the tenant’s choice, compared with the above index. If a level adjustment cannot be carried out at a given adjustment time because the housing price index is not available, the new annual rent for the residential area will be determined instead of the level-adjusted initial rent by using the average of the consumer price index point values for the year preceding that adjustment (adjustment index), adjusted according to the implemented residential building right (k-m²) shown in the lease or a higher realised amount, its market value (€/k-m²) and a 4% yield requirement; thereafter rent development will be linked 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 plot leasing decision to allow application for a building permit. The reservation fee will be credited against long-term land rents if the long-term lease is realised. Otherwise the reservation fee is non-refundable.

More detailed instructions are available in the attached Price Competition brochure.

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