Detached house plot in Kaarela's Kuninkaantammi, plot 33412/4, Pitkäkoskentie 7, area 375 m², building right 160 m², Helsinki

The City of Helsinki leases, by open tender to the highest accepted bidder, seven (7) detached house plots in the Pitkäkoski area of Kuninkaantammi in district 33 (Kaarela). Each plot has its own auction listing where offers are made. Offers may be submitted for each plot.

The city has the right to accept or reject offers made in the price competition.

Rent is determined on the basis of the accepted tender with a 3.5% return target. Before signing the long-term lease the tenant requires an authorisation from the landlord to apply for a building permit. The authorisation is valid for a maximum of 1 year and a rent corresponding to two months is charged for that period. The authorisation is decided upon with the long-term lease. A long-term lease decision may 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 zoning plan allows, an additional purchase price/additional land rent will be charged for the excess in accordance with the draft deed/draft land lease agreement.

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 constructed to a use-ready condition accepted by building control, and the responsibilities under the long-term land lease have been complied with. If the purchase option is not used, the lease term is approx. 80 years. The rent includes a so-called level adjustment, meaning that the annual rent for the dwelling is adjusted at each level adjustment using the average of the three (3) previous years' annual averages of the Greater Helsinki apartment price index (old apartment price index 2020=100) (the adjustment index). For each level adjustment the base index value of the mentioned housing price index is the annual index figure for the year preceding the start of the lease. The level-adjusted annual rent is calculated by dividing the adjustment index value by the base index value and multiplying the annual rent by the resulting factor. Thereafter the rent is adjusted every 10 or 20 years at the tenant's choice compared to the above index. If the level adjustment cannot be made due to the absence of the housing price index at a level adjustment date, the new annual rent for the dwelling is determined, instead of the level-adjusted initial annual rent, based on the average of the consumer price index values for the year prior to that level adjustment date (adjustment index), the amount of residential building right (m²) carried out or stated in the lease (k-m²), its market value (euros/m²) as specified in the lease and a 4% return requirement, and thereafter rent development is 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 in accordance with the invoice before the short-term lease decision for applying for a building permit. The reservation fee is credited against the long-term land rents if the long-term lease is realised. Otherwise the reservation fee is not refunded.

Detailed instructions are in the attached Price Competition brochure.