Settlement Visa - Source of Funds

[petercr]

My wife is applying for UK settlement and to comply with financial requirements we are using the savings only route.

When they ask for sourse of funds on the Appendix 2 form we have stated 'sale of Thai property' ................Is it necessary or advisable to supply further

documentory proof or is the statement in otself sufficient

Thanks

[ThaiVisaExpress]

You should provide evidence, if you have it. This is from the guidance on cash savings from the sale of property :

7.2.10. Funds held as cash savings by the applicant, their partner or both jointly at the date of application can be from the proceeds of the sale of property within the period of 6 months prior to the date of application, provided that:

(i) The property was in the form of a dwelling, other building or land.

(ii) The property (or relevant share of the property) was owned by the applicant, their partner or both jointly at the beginning of the 6 month period prior to the date of application.

(iii) The funds deposited as cash savings are the net proceeds of the sale, once any mortgage or loan secured on the property (or relevant share of the property) has been repaid and once any taxes and professional fees associated with the sale have been paid.

(iv) If the ownership of the property was shared with a third party, only the proceeds of the sale of the share of the property owned by the applicant, their partner or both jointly may be counted.

7.2.11. This means that, where the cash savings held at the date of application are the proceeds of an applicable property sale; the period the property was owned in the 6 months prior to the date of application, before it was sold to produce cash savings, can be counted towards the 6 month period. So money held as cash savings at the date of application can have resulted from the sale of a property for the first part of the period of 6 months prior to the date of application and as cash savings for the rest of that 6 month period if the decision-maker is satisfied that all the requirements in paragraph 7.2.10. have been met in addition to the requirements being met when the funds are held as cash savings (see the table in 7.2.3. for a summary of the cash savings requirements). The rules do not specify what evidence must be submitted as individual circumstances and local property laws and taxes will vary. However, to assist applicants and decision-makers, the rules give examples of some evidence we will take into account. But other evidence may be accepted if it indicates the requirements are met.

Examples of the evidence that can be provided include:

 Land Registry information or documentation (or a copy of this) or its overseas equivalent.

 A letter from a solicitor (or other relevant professional if the sale takes place overseas) instructed in the sale of the property confirming the sale price and other relevant information.

 A letter from a lender (a bank or building society) on its headed stationery regarding the repayment of a mortgage or loan secured on the property.

 Confirmation of payment of taxes or professional fees associated with the sale.

In the UK property taxes are generally stamp duty, capital gains tax and inheritance tax but not all will apply to every property sale. In some cases no property taxes may be due. Professional fees in the UK would generally be regarded as estate agent fees or equivalents and legal fees. Overseas the type of taxes and professional fees due when a property is sold will vary.

If the documentation mentioned in the rules is provided this does not necessarily mean that the requirement is met. The decision-maker must be satisfied that the documents provided, whether mentioned in the rules or not (for example relating to ownership and net proceeds of sale), demonstrate that all the requirements are met. Additional information may be requested so that the decision-maker is satisfied that the rules are met. If the requisite evidence is not provided, the cash savings previously held as property cannot be counted towards the financial requirement.

7.2.12. Case studies – Cash savings previously held as investments or property

Example (a) The applicant‟s partner has an investment portfolio worth approximately £1m, although this value fluctuates. In order to meet the financial requirement, she liquidates part of her investment 2 months prior to the date of application and transfers £62,500 in cash to her personal savings account. She is able to provide a portfolio report showing that the value of the liquidated assets was at least £62,500 7 months prior to the date of application. The cash savings meet the requirements of Appendix FM-SE at the date of application and, by combining the period the money was held as investments with the period the money has been held as cash savings, the funds have been owned by the applicant‟s partner and under their control for at least the 6 months prior to the date of application.

So the financial requirement is met through Category D cash savings.

Example (b ) The applicant and his partner own two properties, one in the UK and one overseas. They have owned both properties which are residential homes for over 10 years. They sell the overseas property prior to returning to the UK. The property is sold 3 months prior to the date of application and the applicant has provided evidence showing that the net proceeds from the sale amount to £70,500 after payment of professional fees and taxes. The applicant has provided a solicitor‟s letter confirming ownership and the sale of the property and a further letter from the solicitor showing the financial transactions and that all outstanding fees are paid. He has also provided a letter from the mortgage lender showing the original purchase price and outstanding mortgage at time of sale and that this has been paid, together with bank statements to show the transfer of the proceeds into the couple‟s joint account. The cash savings now held at the date of application meet the requirements of Appendix FM-SE because taking account of the period they were held as property, the funds have been held by the applicant and under their control for at least the 6 months prior to the date of application. In addition the specified evidence required for the period the money has been held as cash savings has been provided. So the financial requirement is met through Category D cash savings.

Tony M

Edited June 3, 2014 by ThaiVisaExpress

[petercr]

Many thanks Tony ................we will include sales & agents contract etc