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My friend went to Birmingham PEO. His application was put on hold as some case worker as has opened his file in Sheffield PEO.
Case worker at Birmingham PEO was happy with the documents provided and advised that as the case was open in Sheffield PEO they cant issue the visa today.

Did anyone face this type of situation, If so please advise on approx. timelines.

Sadly it is common , and no one really knows why the h.o can't make a decision on the same day. It might take from 2 weeks to a few months. There are other posts about it.

very common... HO themselves admit to 10% of PEO applications being handled this way.

anyway only thing is to wait... a friend of mine had to wait just under 3 months in a similar situation