FLR(M) Application Query

[ukvisa2014]

My spouse came to UK in 2004 on student visa. We got married in 2006. I came to UK in 2006 as student dependant and stayed together since then. He has applied for SET(LR) this week based on Long Residency. I am waiting for his acknowledgement letter (Home Office Ref. No.) which I can enclosed along with my FLR(M) application. This form is very confusing and I hope you all will be able to help me.

2.2 Is this the first time you have applied for a visa or extension of stay in one of the above categories (including previous leave granted as a fiancé(e) or proposed civil partner) with your current sponsor?
Yes

2.3 Please indicate what stage of extension of leave you are applying for or why you are choosing to extend your current leave in one of the above categories.
Second period of leave to remain (following initial grant of leave to remain).
or
You are making a first application from within the UK but have not previously had leave to enter/remain as a partner.
or
Something else

3.17 Has your sponsor previously been sponsored as a partner of a settled person?
I really do not understand this question?

7.3 From the list below, please indicate the financial source(s) and the amount of income you and/or your sponsor wish to rely on to meet the financial requirement.
Income from salaried employment (box ticked) complete section 7.3A
Current annual salary £24000 or £25200
[Note: My spouse has earned the following in last six months.
April - £2000
May - £2000
June - £2000
July - £2100
August - £2100
September - £2100]

7.3A Income from salaried employment
Only complete this section if you and/or your sponsor are working
(v) What date did you/your sponsor commence your/their current employment?
My spouse is working in the same organisation since 2011 and promoted in 2013. His title has been changed. Should I write 2011 or 2013.

(xiii) What was your/your sponsor’s job title with your or their earlier employer?
Do I need to answer this or leave blank.

(xiv) What is your/your sponsor’s annual income from your or their current employment before tax (£)?
£24000 or £25200

Your relationship
Six items of correspondence addressed to you and your partner at the same address as evidence that you have been living together since your last grant of leave in this category, or from the date you first started living together up to a maximum of two years. See Note 9.
Do I have to provide these documents. If yes, then is it the last two years preceding FLR(M) application?

[Amber]

First application and no he's not previously been sponsored I.e. Spouse/partner of a settled person?

[ukvisa2014]

Thank you, Amber for answering few of my queries.
May you please and other members answer the remaining queries.
Please let me know if you need any other information that will help you to answer the above mentioned queries. Thank you.

[ukvisa2014]

Dear all,
Sorry for being impatient.
I know you all are busy with important work and you are here only to help people like us.
May you please spare some time to answer my queries.
FYI, I am planning to submit my application in the first week of October.
Thank you.

[ukvisa2014]

I submitted my FLR(M) application in October and this week I received all my documents and a letter from the Home Office that states:

"This application is not being considered and your documents are being returned to you as your currently have an excess amount of extant leave until the [Date] of [Month] 2017. Because of this, a request for a full refund of your fee is also being made. Your spouse's application for indefinite leave to remain is still outstanding and will be considered soon."

FYI, my spouse is currently on TIER 2 VISA until 2017 and has applied for ILR (based on 10 year long residency) in September and he is hoping to get his ILR visa sometime in Jan-Feb 2015.

Now,
1. thus this mean that I do not need to change my PBS dependant visa to spouse visa? and my visa will not be ceased as soon as my spouse gets ILR (based on long residency)?