Latest changes to Appendix FM and FM-SE
Oct 10th 2013, 4:48 pm
#1
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Latest changes to Appendix FM and FM-SE
For those who haven't spotted it yet - good news for anyone who is selling proerty as part of meeting the financial requirements. From the changes introduced a thte start of the month there is a new FM-SE 11A(d):
So proceeds from the sale of your house don't need to be kept in a bank account as cash for 6 months before you apply.
(d) 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:
(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.
(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.
(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) 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) Registration information or documentation (or a copy of this) from the Land Registry (or overseas equivalent).
(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) 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) Confirmation of payment of taxes or professional fees associated with the sale.
(5) Any other relevant evidence that the requirements in subparagraphs (i)-(iii) are met.
(v) The requirements of this Appendix in respect of the cash savings held at the date of application are met, except that the period of 6 months mentioned in paragraph 11(a) will be reduced by the amount of time which passed between the start of that 6-month period and the deposit of the proceeds of the sale in an account mentioned in paragraph 11(a).
(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.
(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.
(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) 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) Registration information or documentation (or a copy of this) from the Land Registry (or overseas equivalent).
(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) 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) Confirmation of payment of taxes or professional fees associated with the sale.
(5) Any other relevant evidence that the requirements in subparagraphs (i)-(iii) are met.
(v) The requirements of this Appendix in respect of the cash savings held at the date of application are met, except that the period of 6 months mentioned in paragraph 11(a) will be reduced by the amount of time which passed between the start of that 6-month period and the deposit of the proceeds of the sale in an account mentioned in paragraph 11(a).
Oct 10th 2013, 7:36 pm
#2
WhiteRabbit
Joined: Dec 2004
Location: USA
Posts: 1,480
Re: Latest changes to Appendix FM and FM-SE
For those who haven't spotted it yet - good news for anyone who is selling proerty as part of meeting the financial requirements. From the changes introduced a thte start of the month there is a new FM-SE 11A(d):
So proceeds from the sale of your house don't need to be kept in a bank account as cash for 6 months before you apply.
So proceeds from the sale of your house don't need to be kept in a bank account as cash for 6 months before you apply.
This has been one of my major gripes. It was such an idiotic requirement to expect people to sit on "property money" for six months just to apply for a visa.
Oct 11th 2013, 4:35 pm
#3
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Re: Latest changes to Appendix FM and FM-SE
Thanks for posting englishguygoinghome! That is good news!
Oct 11th 2013, 4:51 pm
#4
Dichotomus tinker
Joined: Aug 2013
Location: Ontario, Canada
Posts: 6,678
Re: Latest changes to Appendix FM and FM-SE
For those who haven't spotted it yet - good news for anyone who is selling proerty as part of meeting the financial requirements. From the changes introduced a thte start of the month there is a new FM-SE 11A(d):
So proceeds from the sale of your house don't need to be kept in a bank account as cash for 6 months before you apply.
So proceeds from the sale of your house don't need to be kept in a bank account as cash for 6 months before you apply.
that's still ~$100,000 +/- a few cents & I'm guessing it will be scrutinized carefully that it is net net after you've paid all of any costs including what you're likely to spend on the move costs, flights etc.
IMO, the UKBA will use any excuse to refuse a visa just because its who they are.
If it was me - I'd make sure doubly sure that the 62.8k GBP is all there & try to have extra funds if possible.
Good luck to those going this route
Oct 12th 2013, 1:05 am
#5
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Re: Latest changes to Appendix FM and FM-SE
that's still ~$100,000 +/- a few cents & I'm guessing it will be scrutinized carefully that it is net net after you've paid all of any costs including what you're likely to spend on the move costs, flights etc.
IMO, the UKBA will use any excuse to refuse a visa just because its who they are.
If it was me - I'd make sure doubly sure that the 62.8k GBP is all there & try to have extra funds if possible.
Good luck to those going this route
The difference now is practical. A simple closing statement from the property sale can be used to back up a recent huge deposit to the bank account.
Oct 17th 2013, 8:15 am
#6
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Re: Latest changes to Appendix FM and FM-SE
Thanks englishguygoinghome.
I spotted this two days ago but I still can not decipher clause 5 (v). You suggest that means, we dont have to keep the proceed in a bank account for six months !...
Can you give me your opinion then RE:
I sold a piece of land in 5.April 2013. I have a noterised contract that the builder will pay me 180.000 GBP. But, in instalments. İmmediately paid 15.000GBP. Another 15.000 GBP im January 2014 and the balance 150.000 GBP. in August 2014.
İf my wife applied for a spouse visa today ( just over 6 months passed from the contract, then, can I claim 180.000 GBP cash savings in the bank. Or at least claim the first 15.000 GBP instalment as cash in the bank..??
Thanks
I spotted this two days ago but I still can not decipher clause 5 (v). You suggest that means, we dont have to keep the proceed in a bank account for six months !...
Can you give me your opinion then RE:
I sold a piece of land in 5.April 2013. I have a noterised contract that the builder will pay me 180.000 GBP. But, in instalments. İmmediately paid 15.000GBP. Another 15.000 GBP im January 2014 and the balance 150.000 GBP. in August 2014.
İf my wife applied for a spouse visa today ( just over 6 months passed from the contract, then, can I claim 180.000 GBP cash savings in the bank. Or at least claim the first 15.000 GBP instalment as cash in the bank..??
Thanks
Oct 18th 2013, 8:28 am
#7
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Re: Latest changes to Appendix FM and FM-SE
you can only claim cash in the bank if it is in a bank as cash, or a similar liquid structure - there's a list of them.
All this means is you don't then need to sit on the cash for another 6 months.
If you have additional monies in cash an can show 62500 from various sources then good, otherwise you need to wait until you get the money but can then apply next day
All this means is you don't then need to sit on the cash for another 6 months.
If you have additional monies in cash an can show 62500 from various sources then good, otherwise you need to wait until you get the money but can then apply next day
Oct 26th 2013, 9:09 am
#8
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Re: Latest changes to Appendix FM and FM-SE
Hello englishguygoinghome
Thanks for the reply and sorry for the delay.
I understand you regarding cash in the bank..Thats the bit I dont like or agree. The land that I have is liquid as cash. I ve been offered 100.000 GBP immediate cash and these transactions only take two hours. Money is in your bank within three hours..
But as you say, UKBA wont accept this as cash..
The question is, I have a contract dated 6 months ago, to sell this land to a developer, in exchange of
a) some cash, ( 15000 allready received and in my bank further 15000 GBP in january 14)
b) flats. ( august 14, which will sell estimated a 10 months ago to be 150.000 but I think it will be more)..
Thanks for the reply and sorry for the delay.
I understand you regarding cash in the bank..Thats the bit I dont like or agree. The land that I have is liquid as cash. I ve been offered 100.000 GBP immediate cash and these transactions only take two hours. Money is in your bank within three hours..
But as you say, UKBA wont accept this as cash..
The question is, I have a contract dated 6 months ago, to sell this land to a developer, in exchange of
a) some cash, ( 15000 allready received and in my bank further 15000 GBP in january 14)
b) flats. ( august 14, which will sell estimated a 10 months ago to be 150.000 but I think it will be more)..
Oct 28th 2013, 12:33 am
#9
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Re: Latest changes to Appendix FM and FM-SE
Shireman, in my understanding of the savings requirements, cash means cash. To meet the 62,500GBP requirements, it needs to be in cash, or assets such as stocks/bonds/etc that can be immediately liquidated. As far as I'm aware, property is not considered assets that can be immediately liquidated, but I could be wrong. I know that equity in a property also cannot be used to meet the savings requirement.
Oct 28th 2013, 12:29 pm
#10
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Re: Latest changes to Appendix FM and FM-SE
The latest change means that property assets under your control during the past 6 monhts can be liquidated one day and you can apply the next, as you would with any other investment
Oct 28th 2013, 8:32 pm
#11
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Re: Latest changes to Appendix FM and FM-SE
Thanks again for saving me from this confusing mess, englishguygoinghome!
Oct 29th 2013, 6:04 am
#12
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Re: Latest changes to Appendix FM and FM-SE
Hi again everybody,
I am confused again !
I sold a piece of land worth a lot more than the 62.500 GBP. But the point is, payment will be made in instalments and partly in Cash and partly with new flats. The whole project will be concluded in 18 months..
I dont think UKBA, will accept this as proof of sufficient income, or will they ?
"İncidentally, for those who may be interested to know, in Turkey, this sytem is widely used for new developments. Anyone who has a piece of land with planning concent, can sell it to a developer in return for number of flats. Based on the area, it could be 20 % or 60 % of the number of flats. İn my case, it is 50%."
after watching the storms in my part of UK ( DEVON), I could not go to the beach yesterday. İts 28 today in Antalya !
have a nice day
To
I am confused again !
I sold a piece of land worth a lot more than the 62.500 GBP. But the point is, payment will be made in instalments and partly in Cash and partly with new flats. The whole project will be concluded in 18 months..
I dont think UKBA, will accept this as proof of sufficient income, or will they ?
"İncidentally, for those who may be interested to know, in Turkey, this sytem is widely used for new developments. Anyone who has a piece of land with planning concent, can sell it to a developer in return for number of flats. Based on the area, it could be 20 % or 60 % of the number of flats. İn my case, it is 50%."
after watching the storms in my part of UK ( DEVON), I could not go to the beach yesterday. İts 28 today in Antalya !
have a nice day
To
Oct 29th 2013, 4:15 pm
#13
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Re: Latest changes to Appendix FM and FM-SE
Shireman - it's not income and the only form of savings they will accept is cash, which must be in cash on the day you apply.
Oct 29th 2013, 4:18 pm
#14
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Re: Latest changes to Appendix FM and FM-SE
Thank you for this! I am applying using savings only. I had misunderstood and had thought that the investments I had would be acceptable since they could be liquidated into cash at any time. I have since looked into this further, thanks to your comment here, and have now liquidated all into cash assets. It sucks but I can get them reinvested once I get the visa. I'm basically liquidating them today and applying this week.
Thanks again for saving me from this confusing mess, englishguygoinghome!
Thanks again for saving me from this confusing mess, englishguygoinghome!
Oct 30th 2013, 8:10 am
#15
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Re: Latest changes to Appendix FM and FM-SE
Thanks englishguygoinghome .
The confusion comes from my profession as accountant.
OPTİON C is Non Employment İncome ( excluding pensions).
To an accountant İncome is not necessarily CASH..ie:
Anyway, I set myself up to keep ample money in an account for 6 months to satisfy the UKBA. İts not going to be easy to keep that kind of money in one account for 6 months, but must do it !.
The confusion comes from my profession as accountant.
OPTİON C is Non Employment İncome ( excluding pensions).
To an accountant İncome is not necessarily CASH..ie:
Anyway, I set myself up to keep ample money in an account for 6 months to satisfy the UKBA. İts not going to be easy to keep that kind of money in one account for 6 months, but must do it !.