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Yes you can apply for another 2.5 year extension if you wish. Postal cost is £1,033 plus £500 Immigration Health Surcharge. You will still need ILR though at some point before you can apply for citizenship. Fees go up every year.1. Can I apply for another 2.5 year visa or do I have to go for ILR?
If you apply in person yes. If you apply by post, you should not travel out of the UK while your application is pending.2. If I need to retain my passport (for travel) during the decision period, is there options for this?
Yes, unless you are absent from the UK for 2 or more years, then it lapses.3. Is ILR permanent?
No. If your current visa has expired while HO is processing your application for either ILR or an extension, your Section 3C protection (visa conditions continuation) breaks and your application will likely be considered withdrawn. You also need a valid BRP card to re-enter the UK. You do of course have the option to apply in person for an extra £610 on top of the fees.
Correct yes.So ILR will be £2999 with premium, 2.5 year visa will be 1033+500+610 = £2143 ?
Fairly strictly. Short visits do not maintain ILR status. You only need to be stamped in once as a visitor and you risk yout ILR being superceded.Also, how strictly is the 2 year absence ILR rule enforced? For example, I we lived in Australia in the future (or elsewhere) and visited the UK regularly (or even once a year) would this satisfy the criteria for ILR to remain valid?