Detached house plot in Mellunkylä Tankomäki, plot 47369/6, Tankomäenkatu 28, area 462 m², building entitlement 180 m², Helsinki

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

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

The rent is determined on the basis of the accepted tender using a 3.5% yield target. Before signing the long-term lease, the tenant must obtain an authorisation from the landlord to apply for the building permit. The authorisation is valid for up to 1 year and a rent corresponding to two months is charged for that period. The authorisation is decided on in connection with the long-term lease. A long-term lease decision can be made after the building permit has been granted at the tenant’s request. If more floor area than the plan’s main use for the plot is constructed, an additional purchase price/extra land rent will be charged for the excess in accordance with the terms of the draft deed/draft ground lease.

The tenant may purchase the plot for five (5) years from the start date of the long-term lease, provided a residential building has been built and approved for occupancy by the building control authority and 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 (tasotarkistus), which means the annual rent for the residential area is adjusted at each level adjustment by an adjustment index formed by the average of the annual means of the Greater Helsinki housing price index for the three (3) years preceding the adjustment (old owner-occupied apartments price index 2020=100). For each level adjustment the base index value is the annual index figure for old owner-occupied apartments 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 figure. Thereafter the rent is reviewed every 10 or 20 years at the tenant’s choice against the above index. If a level adjustment cannot be carried out at a given time due to the absence of the above housing price index, the new annual rent for the residential area shall be determined instead by using the average of the consumer price index figures for the year preceding that level adjustment (adjustment index), adjusted on the basis of the realised amount of residential building rights (m²) written in the lease or higher, the market value specified in the lease (EUR/m²) and a 4% yield requirement, and thereafter rent development is linked to changes in the consumer price index in accordance with the lease terms. The base index is the base index determined at the start of the lease in this contract.

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

Further instructions are in the attached Tender Prospectus.

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