What is next for us please?

[Terpe]

My wife came to the UK in nov 2010 on a fiance visa. We eventually married in August 2011 after extension. She applied for leave to remain in oct 2011 and this runs out in oct 2013. What is the next step? I believe it is another leave to remain for 2 years, she thinks she can now apply for citenzenship. I'd rather ask you guys than call the home office. I really hate this stuff.

Based on the information and timescales you've provided, the next step would be ILR (Indefinite Leave to Remain)

Under the 'old rules' (pre July 2012) the qualifying period for ILR is 24 months living in UK as Spouse
(this does not include any time under Fiancee Visa)

Application can be made 28 days before reaching the end of the 24 qualifying period.

Before applying for ILR she will need to have a pass certificate for "Life in UK" test.

She will be eligible for Citizenship after 3 years living in UK as spouse provided she is free from immigration time restrictions on the day she makes the application. Also providing she was actually present in UK 3 years to the date.
(check the requirements - refusals will be made on this point)
By the way time spent in UK under Fiancee visa status can be counted towards Citizenship.

I'd suggest a review of the detail on the UKBA website Requirements for naturalisation if you are married to or the civil partner of a British citizen

Looks like it's going to be an expensive time if you stick with the allowable timetable

Does she already have a pass certificate for Life in The UK ?

[DaveW]

No she doesn't have a certificate for Life in the UK. Can she try to get that at any time?
I find the UKBA website so hard to navigate to find the info we need based on our situation now.