lemon85 wrote:Hi everyone
My British husband, British child and I will move to the UK. We want to use the savings route to meet the financial requirements.
So here comes my question...
We currently have a mortgaged home in China, and have been living in this property for more than 5 years together. The value of the property is around £63,000, but however we've only paid in half of that amount and we'd only get the other half back in cash after a sale. However, if we used £35,000 cash gift/savings (not held for 6 months) to clear the mortgage once and for all today, enabling us to receive over £63,000 cash in total after taxes etc. Can we apply for the settlement visa straight away without waiting for 6 months? Or does it only apply to properties that are fully-mortgaged 6 months prior to application, or to the amount paid into the property is over £62,500 6 months prior to application?
Thank you!
7.4.10. 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.
7.4.11. 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 7.4.10. have been met in addition to the requirements being met when the funds are held as cash savings (see the table in 7.4.3. 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 decisionmakers, 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.
EXAMPLE:
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.
