Rental plots

Renewal of land lease agreements

A long-term land lease agreement can be renewed at the end of the lease. The condition is that no changes have occurred or are occurring in the land use (for example, in the local plan) that would prevent the land use in accordance with the previous agreement.

When renewing contracts, all tenants are treated equally. The terms of renewed contracts are defined using the same principles as in completely new contracts.

The lease agreements for the apartment plots will be extended with a new agreement for 50 years with updated lease terms.

The city aims to clarify lease agreements that will expire in the coming years in good time and to communicate with tenants. It is also a good idea for tenants to be active and to communicate with the city well in advance of the lease ending.

Is your land lease coming to an end?

The procedures related to the termination of the lease have been recorded in different ways in lease agreements made at different times. If you notice that your contract is about to expire and the city has not notified you of the termination, contact the city to agree on further procedures for the lease agreement.

A letter will be sent to the tenant, explaining the steps to take to continue the lease, the future rent for the plot, and information about the possibility of purchasing the plot if the city decides that it is possible in the area in question.

The letter includes an application. Once the tenant has returned the completed application, the city will prepare a decision to re-lease the plot. The tenant will be sent an extract from the decision and information on when the lease agreement can be signed.

Lease renewal costs

When renewing the lease, a one-time fee will be invoiced to cover administrative costs. The amount is determined in accordance with the annual fee decision. In 2025, the amount is 1220 euros.

The tenant may, if they wish, include the amount on top of the value determining the rent of the plot when the duration of the lease is at least 20 years.

Management fees are also charged when the leased property is purchased.

If the customer has already paid the subdivision costs for the plot, no administration costs will be charged.

If the signing of the leases to be renewed is delayed

Any mortgages confirmed on the land lease and buildings will lapse if the registration of the lease is not initiated at the National Land Survey of Finland in good time before the end of the old agreement.

Since confirmed mortgages serve as collateral for loans granted by banks and other financial institutions, it is possible that banks will call the loans into payment when the mortgages expire. It is therefore a good idea for the tenant to be proactive in agreeing on further steps in the lease agreement in a timely manner.

Failure to sign the agreement will leave the tenant without an agreement. In any case, the ground rent invoicing will change in accordance with the new rental decision and

Land rents are collected in accordance with the decisions. The tenant therefore has an obligation to pay, as the tenant keeps the building they own on city land, but there are no contractual terms that secure housing and the maintenance of the building.

If the tenant is planning to sell the building and leasehold and has not signed a ground lease agreement, the tenant has a duty to inform the buyer that there is no signed ground lease agreement. The tenant is liable for any damages and costs resulting from their actions.

Land tenants should note that the city is not responsible for any damages, inconveniences or costs resulting from the tenant's failure to sign the contract.

Rental

The annual rent for residential plots for rent is 5% of the plot's capital value. The rent is linked to the cost of living index.

The cost of living index will be based on the previous year's average index starting from 1.1.2021 January XNUMX, and the index will only be adjusted once a year. These conditions also apply to renewable contracts.

The rent of the plot is for the owner of the plot, i.e. the city of Imatra, interest on the capital value of the plot.

Rental income is not earmarked for the development of the district in question, but is a significant source of income for financing various city functions and services.

Determining the rent for renewable land lease agreements

The starting point is a reasonable current price corresponding to the market price. The rent is affected by the building right specified for the plot in the local plan. However, the rent is not affected by how much of the building right has been used.

Regarding the reasonableness of the rent, the rent is not compared to the old rent, but to the reasonable fair market value at the time of renewal.

Plot rent development and plot prices

The prices of undeveloped detached house plots in Imatra are around 3–000 euros. At this price level, a 47% annual rent is practically 000–5 euros.

The city currently has approximately 140 single-family house plots available for distribution. The most expensive plots are located in the Imatrankoski city center or have water views.

The city has transferred (sold or rented) new single-family house plots annually in recent years, averaging less than 3 per year. The average price of the city's plots is approximately 15 euros and the median is approximately 800 euros. The annual rent for the average plot is approximately 12 euros.

Land lease agreement decisions

The city surveyor decides on the amount of rent and the lease term for new land lease agreements when the price of the individual plot of land subject to the decision is no more than 100 euros and the tenant is a private individual.

If the tenant is a company or community, the decision is made by the land use manager.

The Department of Business and Land Use is responsible for preparing the renewal of land lease agreements.

Plots

Residential plots

The pricing of plots takes into account the pricing of new plots in the area and the rents of previously extended plots.

Plot areas and building rights vary in different neighborhoods and blocks. The definition of building right varies, the most common definitions are the efficiency number, for example e= 0,30, in which case 30% of the plot area can be built, or the building right number, for example 250, in which case 250 square meters can be built on the plot.

Company-style apartment building, terraced house and service building plots

According to the Municipal Act, the city must enter into long-term land lease agreements at market prices.

Transfer of tenancy

It is not possible for the city to transfer the lease agreement to new tenants with a new lease agreement; in this case, the tenant must sell the plot lease right to new persons with a written deed of sale.

The deed of sale must be submitted to the city so that the city is informed of tenant changes and can send ground rent invoices to the correct tenants.

Registration of tenancy

According to the terms of the lease agreement, the tenant must record (register) their lease rights. This is done by applying for registration of the lease right from the National Land Survey of Finland.

In old leases, it is possible to continue the registration of the leasehold right during the lease term with a new lease agreement, by applying for it from the National Land Survey of Finland, which charges a fee. If the lease term expires, the tenant must apply for the registration of the leasehold right again (registration of a special right), which is slightly more expensive than changing the registration.

Also in connection with the sale of the land lease right, the new tenant must apply to change the registration of the lease right to their own name from the Land Survey.

Registration of a land lease right is mandatory for the lease of city plots when the lease right can be transferred further without consulting the landowner, there are buildings belonging to the tenant in the area and buildings belonging to the tenant may be built in the area. Instructions for registering a special right can be found on the National Land Survey of Finland website: Maanmittauslaitos.fi