1 Assignment of self-build plots for detached houses 2018 PLOT APPLICATION INSTRUCTIONS PLOT APPLICATION The City of Espoo will assign 46 plots for self-build. The Trade and Competitiveness Division of the City Board decided on the matter in its meetings on 11 June 2018 (item 88). There are 46 plots included in the plot application process. Of these, 24 are located in Lintuvaara with seven more in both Saunalahti and Kurttila. There are also four plots in Kauklahti, three in Nupuri and one in Henttaa. The plots in Henttaa and Taltrikinmäki and most of the plots in the Muuttolinnunmäki I townplan area are only available for lease. In the other areas, a plot can be leased or purchased. Application period The application period begins on 10 September 2018 at 10:00 am and ends on 2 October 2018 at 1:00 pm. Participation in the application process Plots can be applied for by filling in the electronic application form. The application form must be filled in electronically during the application period. The form can be filled online on the website of the Real Estate Department (www.espoo.fi/omakotitontit) when the plot application period begins on 10 September 2018 at 10:00 am. The application period ends on 2 October 2018 at 1:00 pm, by which time the application must be submitted. If electronic application is not possible, the applicant is asked to contact the Real Estate Department, tel. +358 46 877 1881. Private persons over the age of 18 can apply for a plot. Each applicant may submit one application. SELECTION OF PLOT RECIPIENTS Plot draw and plot selection Once the application period has ended, a serial number will be drawn for all applicants who have submitted an approved application by the set deadline. The draw results will be published in week 40 at the earliest. The drawn personal queue number will be sent to the applicant by email. Those entitled to plot selection will be invited to the selection event by email. In the draw, precedence will be given to residents of Espoo, i.e., those whose place of domicile as of 1 January 2018 is Espoo according to the Population Information System (Act on the Municipality of Domicile 201/1994, section 1, subsection 2). At plot selection events, the plot recipients (Espoo residents first) are given the opportunity to select their plot in the order established by the draw. Applicants residing in Espoo who are given precedence get to select first. After this, if there are still plots up for selection, it is the turn of out-of-towners in the order established by the draw. During the plot selection, the plot recipient indicates whether they want to purchase or lease the plot (the plots in Henttaa and Taltrikinmäki and most of the plots in the Muuttolinnunmäki I town-plan area may only be leased).
2 If plot reservations or leases are cancelled at a later stage, the plots will be included in the following plot application rounds. If, at the plot selection event, the plot recipient selects a plot where he/she can and wants to build at least two homes together with someone else, the applicant is requested to indicate in connection with the plot reservation the persons with whom he/she will lease or purchase the plot and carry out the construction work. Reservation fee The plot recipients must pay the reservation fee ( 2,000) at the plot selection event. The fee will be deducted from the lease or purchase price of the plot. If the person making the reservation does not sign the assignment agreement by the given deadline (within about 2 months of the reservation), he/she will lose the fee. The reservation fee covers the costs incurred by the city due to the cancellation. PLOT ASSIGNMENT Plot recipient and assignment agreement The plots will be assigned to the applicants or the housing companies to be established or already established by them for this specific purpose. The plots will be assigned to such housing companies only if the planning regulations allow for the construction of more than one home. The plot recipients must sign the assignment agreement (deed or lease) within approximately two (2) months of the plot selection. Payment of purchase price The purchase price must be paid at the signing of the deed at the latest. The reservation fee will be deducted from the purchase price. Term of lease and lease payment The term of lease and lease payment will begin the day the lease is signed. The lease for plot 21159/22 expires on 31 December 2076, and the leases for plots 45094/3-5 and 45116/3-4 expire on 31 December 2077. The leases for the other plots expire on 31 December 2078. The lease will be paid quarterly to the bank account provided by the lessor. The due date is the 30th day of the first month of the calendar quarter. The reservation fee will be deducted from the first lease(s). Redemption of leasehold plot The plots in Henttaa and Taltrikinmäki and most of the plots in the Muuttolinnunmäki I townplan area may not be redeemed during the lease period. In the other areas, a leasehold plot can be redeemed. The sales price will be determined separately based on the price level at the time of the redemption. CONSTRUCTION OBLIGATION Construction time and volume For the plots to be sold, the duration of the construction obligation is three (3) years. The volume of the construction obligation is 70% of the maximum gross floor area allowed, and the obligation is considered fulfilled following approval for use by a building inspection authority. For the leasehold plots, there is no construction obligation. However, the leasehold of the plot cannot be assigned before 70% of the maximum gross floor area of the plot has been constructed and approved for use by a building inspection authority. If the plot recipient assigns the plot or their shares in the housing company without the city s consent before meeting the construction obligation of 70% of the maximum gross floor area of the plot, they commit to reimburse the city at an amount of 25 times the full annual lease for a leasehold plot. Agreement penalty If the plot recipients fail to fulfil the construction obligation, they must pay an agreement penalty to the city. The annual agreement penalty for a delay for purchased plots is 8% of the
sales price. However, there is a 5-year maximum. RESALE AND ASSIGNMENT RESTRICTION BEFORE MEETING THE CONSTRUCTION OBLIGATION 3 If the plot recipient assigns the plot or his/her shares in the housing company without the city s consent before meeting the construction obligation, he/she commits to reimburse the city. The compensation for a plot to be sold is the sales price of the plot, while the compensation for a leasehold plot is 25 times the full annual lease. LEASEHOLD REGISTRATION AND MORTGAGE OF DETACHED HOUSE PLOTS Leasehold registration The leaseholder of a leasehold plot must apply for leasehold registration in accordance with the land laws. The registration authority is the National Land Survey of Finland. Mortgage for the City of Espoo When applying for leasehold registration, the leaseholder must apply for a mortgage targeting the leasehold and any existing buildings or buildings to be constructed by the leaseholder on the leasehold plot. The mortgage amount must be three times the annual lease, and the mortgage must have the highest priority. Mortgage deed In his/her mortgage application, the leaseholder must specify that the mortgage deed for the aforementioned mortgage is to be handed over to the lessor as a bond for the fulfilment of the lease obligations. Practice In practice, the registration and mortgage applications are handled such that, when signing the lease, the leaseholder will also sign the registration and mortgage applications, which will then be sent to the registration authority by the city. The registration and mortgage applications are made at the leaseholder s expense. The original lease of the leaseholder will be returned to him/her by the registration authority with cash on delivery or an invoice. The registration authority sends the mortgage deed directly to the city. More information National Land Survey of Finland, www.maanmittauslaitos.fi, tel. 029 530 1110 TAXES AND FEES Fees for water and sewerage connections HSY Water Services (tel. +358 9 1561 2110) charges fees based on the Act on Water Services (119/2001). In addition, the leaseholder/purchaser of the plot must pay housespecific fees for the work and material costs related to water and sewerage connections. HSY fees for joining networks can be viewed at the following address (situation in August 2018): https://www.hsy.fi/fi/asiointi/uudelle-asiakkaalle/vesihuolto/sivut/maksut-verkostoihinliittymisesta.aspx Title registration fee for purchased plots The plot purchaser is responsible for the registration of his/her title as well as for the application fee and asset transfer tax (4% of purchase price) to be paid to the government. In 2018, the application fee is 119. Registration and mortgage fee for leasehold plots In 2018, the leasehold registration fee to be paid to the government is 129, and the mortgage fee is 35 (electronic). Real estate tax The plot owner pays real estate tax for the plot and buildings, while the leaseholder only for the buildings. The person liable to pay taxes is the one who owns the property or building at the beginning of the calendar year. PUBLIC UTILITIES Vehicle access and water supply and sewerage
4 Construction work can begin when the vehicle access and water supply and sewerage are completed. According to an estimate by the Public Works Department, they will be completed for the Saunamäki III and Muuttolinnunmäki I plots by the end of May 2018. The completion of the vehicle access and water supply and sewerage can be delayed from the estimated schedule due to unexpected circumstances. For the other areas, the vehicle access and water supply and sewerage are ready. When the plot is delimited by a street or park, the plot owner/leaseholder must determine the planning status related to the street or park and any existing street, park or construction plans. For additional information on the planning and building of the vehicle access and water supply and sewerage, contact the customer service office of the Environment and Technical Services, tel. +358 9 8162 5000 (Mon, Wed Fri 8:00 am 3:30 pm, Tue 10:00 am 3:30 pm). Electricity connections It is recommended to contact the customer service of the local distribution network holder early on with regard to the electricity connection in order to determine at what point it is possible to join the electricity network. Sometimes, network solutions and network capacity can cause longer-than-expected delivery times in the construction schedules of electricity connections. More information: Caruna Espoo Oy, tel. 0200 23222 or www.caruna.fi District heating connections Fortum offers district heating as the heating solution for plot 6 in block 45086 in Kurttila. For the other plots to be assigned, Fortum may offer district heating as the heating solution provided that a sufficient number of the plots in the area select district heating as their heating solution. Placement of cables, pipes, etc. The city reserves the right to establish easements without compensation when necessary for the existing public utility cables and pipes or those as per the city plan. The city is entitled to place/construct on the plot, without compensation, ramps, grading, sections and other such constructions that may be required by the block and street plan. Boundary trenches The plot owner/leaseholder is responsible for digging boundary trenches and directing run-off water. Underground plot pipes and cables There may be pipes and cables on the plots located in constructed areas. Before commencing any excavation work, the plot recipient must verify the location of possible underground cables, wires and piping. The location analysis of underground cables and pipes is done at the cable and pipe information service of the Environment and Technical Services, address: Kannusillankatu 8 (August 2018). The service is free-of-charge to the customer. Explore the cable and pipe information service on the following website: http://www.espoo.fi/fi- FI/Asuminen_ja_ymparisto/Asiakaspalvelu/Luvat_ja_ohjeet/Johtotietopalvelu. Electronic services of the cable and pipe information service can be accessed at the following address: https://easiointi.espoo.fi/epermit. CONSTRUCTABILITY OF SOIL The Geotechnical Engineering Unit of the Public Works Department has prepared preliminary reports on the soil and building foundation method. The prepared constructability report is not sufficient for the final building design. An additional soil survey must be done at the construction site in order to determine the soil layers for detailed foundation planning. The plot recipient is responsible for conducting the soil surveys required to plan the construction project and for any structural solutions related to project implementation required by the soil. More information: Geotechnical Engineering Unit, www.espoo.fi, geo(at)espoo.fi, tel. +358 9 816 21 (exchange).
5 PLANS AND BUILDING REGULATIONS Further information about city plans, planning regulations and block plans is available from the City Planning Department - Henttaa: Katri Ervasti, tel. +358 43 825 3077, email: katri.ervasti(at)espoo.fi Sirpa Sivonen, tel. +358 50 347 5494, email: sirpa.sivonen(at)espoo.fi - Kauklahti, Kurttila and Nupuri: Johanna Nuotio, tel. +358 43 825 5221, email: johanna.nuotio(at)espoo.fi and Outi Reitmaa, tel. +358 43 824 9583, email: outi.reitmaa(at)espoo.fi - Saunalahti: Aila Harmaajärvi, tel. +358 46 877 2123, email: aila.harmaajarvi(at)espoo.fi and Mervi Hokkanen, tel. +358 43 824 6862, email: mervi.hokkanen(at)espoo.fi - Lintuvaara: Sari Metsälä, tel. +358 46 877 2772, email: sari.metsala(at)espoo.fi and Tiina Piironen, tel. +358 43 824 6897, email: tiina.t.piironen(at)espoo.fi Further information about building and permits is available from the Building Control Centre (telephone service: Mon Thu 9:00 10:30 am): - Henttaa and Lintuvaara: Jarmo Kettunen, tel. +358 9 816 26617, email: jarmo.kettunen(at)espoo.fi - Saunalahti, Kauklahti and Kurttila: Tarja Niemenlehto, tel. +358 43 827 2193, email: tarja.niemenlehto(at)espoo.fi - Nupuri: Outi Niskanen, tel. +358 46 877 2259, email: outi.niskanen(at)espoo.fi Building easements A building easement must be established if some part of the building extends to someone else s plot, the buildings share a joint wall at the plot boundary or some structure of the building borders the other plot. The establishment of the building easement requires that the interested property owners and holders agree on it in writing. Easement agreements must include signatures from all property holders and, in the case of leasehold plots, those of the city. Map and drawing documentation must be appended to the easement agreement that specifies the nature of the easement. There is no authority for preparing easement agreements it is the responsibility of property holders themselves. The establishment of an easement can be applied for in writing from the Building Control Centre. The real estate lawyer of the Building Control Centre decides on the establishment of the building easement in Espoo. OTHER PLOT-RELATED INFORMATION The plot recipient is responsible for removing any existing movables on the plot at his/her own expense. FURTHER INFORMATION ABOUT THE PLOT APPLICATION PROCEDURE Further information about the plot application procedure: Land use negotiator Antti Yli-Panula, tel. +358 46 877 1881, antti.yli-panula(at)espoo.fi