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What date did her initial visa in 2012 expire??1. I am wondering if I can apply for her ILR based on the two year rule (which was applicable at the time of her initial entry) at the time of expiry of her current visa as she will be in the UK for nearly 4 years?
No, she cannot apply for ILR based on the 'old two year route' visa. That ship has sailed and been superceded by her new entry clearance in 2014. She will only qualify for ILR no sooner than within 28 days before 4th May 2019.1. I am wondering if I can apply for her ILR based on the two year rule (which was applicable at the time of her initial entry) at the time of expiry of her current visa as she will be in the UK for nearly 4 years?
She will be refused and you will lose the fee. If her visa has already expired by that time, she will be an overstayer. There are no appeal rights for PBS route applications.2. If I apply for ILR and she doesn't get it because they say she had to wait 5 years then would they grant extension or would we lose all the fee and apply for extension again?
No, you are wrong. PBS Dependents residence starts counting from the date they ENTER the UK. The 3 months or 90 day concession DOES NOT apply to dependents.btw given that her visa was issued in Feb 2014 and she arrived within the 3 months period in the UK so I think her time will be counted backwards from Feb and we should be able to apply sometime in Jan 2019 .. may be I am wrong but would be great if CR001 or someone could clarify
That won't happen. If you vary to ILR and ILR is refused, you lose the ILR fee and you will have to apply again for Tier 1 General dependent, if HO give you the opportunity to, and pay the visa and IHS fees again.if they confirm in writing that in case of refusal of ILR we will be granted PBS extension (without paying fee two times - ILR rejection plus PBS extention) then that's the only case I will go for it.