Detached house plot in Mellunkylä (Tankomäki), plot 47370/1, Tankomäenkatu 32 — area 462 m², building rights 180 m², Helsinki

The City of Helsinki will lease, by open bidding to the highest accepted bid, nine (9) detached house plots in the Tankomäki area of district 47 (Mellunkylä). Each plot has its own auction; bids may be made for each plot.

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

Rent is set on the basis of a 3.5% yield target applied to the accepted price competition bid. Before signing the long-term lease the tenant must obtain authorisation from the landlord to apply for a building permit. The authorisation is valid for up to 1 year and a rent equivalent to two months is charged for that period. The authorisation is resolved 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 more floor area than the zoning plan’s main use permits is built on the plots, an additional purchase price/additional ground rent will be charged for the excess in accordance with the draft deed/land lease draft terms.

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 and approved for use by building control and the obligations of the long-term ground lease have been observed. If the purchase option is not used, the lease term is approx. 80 years. The rent includes a so-called level adjustment, meaning the annual rent for the residential area is adjusted at each level-adjustment point using the average of the annual means of the Helsinki region house price index for existing apartments (price index for old condominiums 2020=100) for the three (3) years preceding the adjustment (the adjustment index). For each level adjustment, the base index value of the said house price index is the annual index figure for the year preceding the start of the lease. The level-adjusted annual residential rent is calculated by dividing the adjustment index by the base index 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 the level adjustment cannot be carried out at the adjustment time because the above house price index is unavailable, the new annual residential rent is determined instead using the average of the consumer price index figures for the year preceding the adjustment (the adjustment index), adjusted according to the implemented residential building right (m²), its market value stated in the lease (€/m²) and a 4% yield requirement, and rent development is then 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 term.

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

More detailed instructions can be found in the attached Price Competition brochure.

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