ILR - extension application declared invalid, payment issue

[chi143]

I applied my Tier 1 extension for 3 years on 10 Aug 2009 and my application was returned as invalid on 15-09-2009 because when they tried to process visa fee payemnt got declined, By the time Home office returned my application and I re apply ( 30-09-2009), my visa was expired.

The 2nd application was approved later and Home office granted me 3 years Tier 1 visa on 16-10-2009.

Now I want to apply for ILR on the basis of 5 year

I am very confused what to do as I overstayed because of dependant invalid application and whether this will effect my ILR application or not.

Should I apply first as extension of Tier1 and then apply ILR.

or apply only for ILR.

URGENT ADVICE REQUIRED......................
I will appreciate the advice from some one who was in same kind of situation and what was the out come................

[geriatrix]

Should be okay since you applied (again) within 28 days of being informed that your application was deemed invalid due to payment issues.
See also The Immigration and Nationality (Cost Recovery Fees) Regulations 2007 and Invalid application due to payment problems?