Detached house plot in Tankomäki, Mellunkylä, plot 47370/3, Tankomäenkatu 36, area 462 m², building entitlement 180 m² (GFA), Helsinki

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

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

The rent is determined on the basis of the approved bid with a yield target of 3.5%. Before signing a long-term lease the tenant must obtain an 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 is charged for that period. The authorisation is decided on when the long-term lease is agreed. A long-term lease decision can be made after the building permit has been granted at the tenant’s request. If more floor area is built on the plots than the main use specified in the local plan allows, an additional purchase price/land rent will be charged for the excess in accordance with the draft deed/draft lease terms.

The tenant has the option to purchase the plot within 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 that the obligations under the long-term land lease have been complied with. If the purchase option is not exercised, the lease term for the plot will be approx. 80 years. The rent includes a so-called level adjustment, meaning that the annual rent for the residential space is adjusted at each level adjustment by the average of the annual averages of the Greater Helsinki housing price index (resale apartment price index 2020=100) for the three (3) years preceding the adjustment (the adjustment index). In each level adjustment the base index used is the annual 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 that ratio. Thereafter the rent is adjusted every 10 or 20 years, at the tenant’s choice, in comparison with the said index. If the housing price index is not available at a level-adjustment date, the new annual rent for the residential space will instead be determined using the average of the consumer price index values for the year preceding that adjustment (the adjustment index), adjusted according to the contractual or a higher realised amount of main-use residential building right (k-m²), its market value (€/k-m²) and a 4% yield requirement, and thereafter rent development will be linked to changes in the consumer price index pursuant to the lease terms. The base index in this lease is the base index defined at the start of the lease term.

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

Further instructions can be found in the attached Price Competition brochure.

IMPORTANT! The plots in the price competition are located in a groundwater area and therefore ground-source heating (geothermal) may not be installed on them.