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My friend's current Tier 2 General visa expires on 3rd August 2017. This is her the expiry date of her first term under Tier 2 which was granted for the initial 3 year term.

She has a husband (dependent visa) and daughter (dependent). Both of the dependent visas expire on 3rd August 2017 as well.

My friend had been in the UK consecutively, without any break for 5 years under a student visa followed by 2 years under the PSW route, after which she got a Tier 2 General Visa.

She entered the UK for the first time on 6th Aug 2007 under the student visa route. I understand that her student visa entry clearance had started from 28 July 2007.The problem is that her 10 year's in the UK will be on 5 August . Is it possible for them to apply for ILR under the 10 year route 30 days before 5 August 2017, even though there current visa technically does not allow them to complete the full 10 years needed by a couple of days.

If they have to apply for a Tier 2 General extension and then a ILR application later, just for 2 days then it will be thousands of pounds wasted

Yes. She may apply for ILR at most 28 days prior to the completion of her 10 years anniversary of her initial entry into the UK. However, her dependants should switch to FLR(M) on the 5 year route, unless they qualify for ILR under Long residence too.

Would it be better for her dependants, if she continued under the Tier 2 (General) route?

so even though she does not have a valid visa which will get her to the full 10 years of stay... (its a couple of days short)... she can apply for ILR regardless?
Also why would it be better for her dependents to stay on tier 2 route?

It's important to have valid leave on the date of application. It doesn't matter much if leave expires after the date of application, as it's extended under Section 3C while the decision is pending.

If she stayed on under Tier 2 (General) until ILR under Tier 2 (General), then her dependants wouldn't have to switch to FLR(M).

Hi

Sorry one further question. As she just had a child she is planning to quit her job after she gets ILR.

To save on visa fees - can she switch to ILR and then her dependents (husband and young daughter) renew their dependent leave afterwards as Tier 2 dependents (so that their 5 year stay doesn't restart - but she will have already got ILR).

This will save them thousands in £ of fees rather than her converting to Tier 2 first and then getting her dependents to renew on Tier 2 -- and then her paying for new ILR fees and her dependents staying on thier tier 2 depenednt visas until they become eligible for ILR.

If they grant her ILR under Long residence, then her dependants cannot extend as PBS dependants.

Thank you.

Can she extend Tier 2 then her dependents extend under Tier 2... and she convert to ILR but her dependents stay on their Tier 2 dependent visas until they are eligible for ILR after 5 years?

The problem is that her dependants won't be eligible for ILR as PBS dependants (5-year route), if they grant her ILR under Long residence.