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Can someone let me know how long it really takes for the citizenship ceremony? It's with Birmingham council and they say it can take upto 2 hours!!.

One more question, if my wife submits her application for Citizenship using NCS and then travels out of UK on her home country passport, will that be OK? I think it is ok, but my wife is apprehensive. could someone clarify/confirm either way please?

Mine took almost 1:30hs, from the moment I entered the council until I left (that includes checking everyone's documentation), but I think it depends on each council.

It's ok as long as you're wife is in the UK when UKBA receives the application, that's why they ask you to tell them if you're travelling in the next 5 days. Since NCS will give you a tracking number, you will know when they receive it.