Meeting UK financial reqs with Thai house sale

[glastoglen]

Hi, Planning to apply for a UK settlement visa shortly and will be using the 62,500 pounds in the bank route. A large chunk of this will be coming from the sale of a house in my wifes name. Apparently this money won't need to stay in a Bank account for six months as it's already in my wifes possesion(in the form of property).

Has anybody done this and do they know what evidence will be required?

[7by7]

Remember it is only the net proceeds of the sale, after deducting all fees, taxes, mortgage settlement etc., which can be used.

 

See paras 7.4.10 to 7.4.15 of the financial appendix and para 11A(d) of the specified evidence appendix.

Quote

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, in the form only of a dwelling, other building or land, which took place within the period of 6 months prior to the date of application, provided that:

1. (i) The property (or relevant share of the property) was owned at the beginning of the period of 6 months prior to the date of application and at the date of sale by the applicant, their partner or both jointly.
2. (ii) Where 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.
3. (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.
4. (iv) The decision-maker is satisfied that the requirements in sub-paragraphs (i)-(iii) are met on the basis of information and documents submitted in support of the application. These may include for example:
   1. (1) Registration information or documentation (or a copy of this) from the Land Registry (or overseas equivalent).
   2. (2) 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.
   3. (3) 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.
   4. (4) Confirmation of payment of taxes or professional fees associated with the sale.
   5. (5) Any other relevant evidence that the requirements in subparagraphs (i)-(iii) are met.

Note that the documents in sub para (iv) are examples only; some of which may not be available in Thailand. You need to provide as much evidence as you can to show that the requirements of sub paras (i) to (iii) are met.

Edited February 7, 2017 by 7by7
Addendum

[glastoglen]

Hi, thanks for the reply. My concern is that the transfer document from the land department will show a much lower figure than the sale price(for tax reasons). We will have a cashiers cheque from the buyer for the full amount and can write up a contract.

[7by7]

As said; it is the net amount received which you can use, not the gross.

 

The cashiers check and contract will only show the gross amount paid by the buyer.

 

I suspect that this will not suffice and the ECO will also want to see evidence of what deductions were made from the gross amount and also the net amount received by your wife; e.g. the transfer document.

 

If this evidence shows a lower amount than that actually received, and therefore the total amount which you both have is not enough to meet the requirement via cash savings, then it looks like your desire to avoid tax will come back to bite you on the bum with regards to the visa application!

[glastoglen]

Ok, thanks again. From what I can figure out playing around with  www.acuterealty.com/Calculator.asp. It appears that the actual sale price only has an effect on the 0.5 % stamp duty. (based on a property owned for over 5 years) If this is the case we will declare the full sales price as any savings would be insignificant. My wife has different understanding of the rules however.

Edited February 7, 2017 by glastoglen