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 2026, the amount is 1240 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 leaves the tenant without an agreement. In any case, the ground rent invoicing will change to be in accordance with the new rental decision and the ground rents will be 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 the contractual terms that secure living and maintenance of the building are missing.

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.