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Thomas
Thomas, Lawyer
Category: Immigration Law
Satisfied Customers: 7626
Experience:  UK Lawyer holding practising certficate for England & Wales.
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To fulfill the financial requirement part of the spouse settlement

Resolved Question:

To fulfill the financial requirement part of the spouse settlement visa, if the applicant is showing cash savings of GBP 62500+, do those savings have to be in a UK bank a/c or can they be shown to be deposited in a bank a/c in the country where applicant is applying for the visa? Connected to this, if the applicant can show that the money was invested in property for the first part of six months and then later turned into cash (by selling property) in the country where applicant is applying from (not UK), would that be ok?
Submitted: 3 years ago.
Category: Immigration Law
Expert:  Thomas replied 3 years ago.

Hi

Thank you for your question and patience, I’m Tom and I’ll try to help you.

Cash savings do not have to be in a UK bank, but they must comply with the following:-
- The account is held within a bank or building society
- The bank/building society is a financial institution regulated by the appropriate
regulatory body for the country in which that institution is operating
- The bank/building society is not on the list of excluded institutions under the
Immigration Rules
- The account is a current account or a savings account
- Regular bank statements are provided
- The statements cover the necessary time period required in the Immigration Rules
- The savings are held in cash
- The savings can be immediately withdrawn (with or without penalty)
- The funds are under the control of the person and/or their partner for the necessary
time period required in the Immigration Rules
- The source of the funds is legal
- The source of the funds has been declared

You will note from the above that they must be held in an bank/financial institution that is regulated by the regulatory body for the country where the bank is

In order to rely on the savings they must have been held as cash, so you cannot rely on any period of time where the money was effectively invested in a property I’m afraid.

My goal is to provide you with a good service. If you feel you have received anything less, please reply back as I am happy to address follow-up issues specifically relating to your question.


Kind regards,


Tom
Customer: replied 3 years ago.

Thanks for your reply Tom. You wrote: In order to rely on the savings they must have been held as cash, so you cannot rely on any period of time where the money was effectively invested in a property I’m afraid.


 


Are you sure about that, if that's the case, then how do you explain the following:



Annex FM Section FM 1.7: Financial Requirement



 



 


7.4.8. Funds held as cash savings by the applicant, their partner or both jointly at the date of application can have been transferred from investments, stocks, shares, bonds or trust funds within the period of 6 months prior to the date of application



7.4.9. This means that, where the cash savings have previously been held as investments, stocks, shares, bonds or trust funds that were owned by and under the control of the applicant, their partner or both jointly, this ownership period can be counted towards the 6 month period. So money held as cash savings at the date of application can have been liquidated by the same owner(s) from investments and may have been held as investments 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



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


 


Thanks


Expert:  Thomas replied 3 years ago.
Hi,

I'm fairly confident in this case because:-
1) I believe the state guidance would be interpreted to mean "investments" in the form of financial products rather than property
2) the house's title is in your brother's name any way so it's not likely to be accepted to be your savings during this time. Even a declaration of trust stating that you hold the benefical interest in the property would be viewed as highly suspicious and for this reason I don't think you will be able to base your application on it.

Tom
Customer: replied 3 years ago.

I see where you're coming from but I meant like lets say my wife invests the money abroad now in property in her name for lets say 4 months, then sells it and keeps the cash in a bank a/c for 2 months and then applies for the spouse settlement visa. That should be ok shouldn't it? Albeit we may have to pay CGT on any profits on the sale of that property.

Expert:  Thomas replied 3 years ago.
Hi,

I would still not be confident that it would be okay. The money is tied up in the property. This is not a form of investment that can be encashed easeily and it's not regulated by a financial regulatory body.

I cannot see it working I'm afraid.

Tom
Customer: replied 3 years ago.

Wife would only apply for the visa once the property is sold and cash proceeds are in the bank.


As for "it's not regulated by a financial authority", she'll have title deeds of the property, estate agent's and lawyer's letters as evidence that the property was actually bought and sold with purchase and sale price. Won't this be acceptable?

Expert:  Thomas replied 3 years ago.
Hi,

I really can't say with any confident that it will. The application is quite expensive, so I would want to avoid a rejection. However, if you can afford to lose the application fee then you can try your luck but I would prepare for a rejection.

Tom
Customer: replied 3 years ago.

Hi,


 


What do the following state guidelines mean then:


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?


 


 

Expert:  Thomas replied 3 years ago.
Hi


Yes, but that requires that the property was owned by you. The legal title is owned by your brother, not you.

If you executed a declaration of trust declaring that although the legal title is held by your brother the beneficial title is vested in you the the Home Office would be highly suspicious of this and would likely reject.

Tom
Customer: replied 3 years ago.

Hi,


 


There's a misunderstanding here. You're mixing information in the past question with this new question. For the sake of this question, please ignore the other question that I asked you for a moment and then answer the question I asked you in the first place as follows: if the applicant can show that the money was invested in property for the first part of six months and then later turned into cash (by selling property) in the country where applicant is applying from (not UK), would that be ok?


 


Thanks

Expert:  Thomas replied 3 years ago.
Hi,

Sorry, I've been outside of the UK for the past 4 days.

I will be able to answer your question when I'm back home in about 2 hours or so.

Thanks for your patience.

Kind regards,

Tom
Expert:  Thomas replied 3 years ago.
Hi,

If the applicant were able to show that they had purchased a property with the money and they were named as owning the property then they sold the property and held the money as cash savings at the date of the application then this would be meet the financial criteria.

Kind regards,

Tom
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