ILR Advice needed

[Terpe]

I spoke to my wife's tutor and he says the exam will be around the middle of June but results will probably be nearer August so we are just going to apply for visa extension. My wife's here from 7th June 2012, so can apply for the extension from 10th May, is that right?

There's no mandatory qualifying/probation period of UK residence so in principle you can apply for FLR(M) at anytime before expiry of current visa.

Also, if we do not need to meet the new financial requirements then do I still need to answer the financial questions on
SECTION 7B MAINTENANCE 7:5, 7:6 & 7:7?

Yes you still need to complete Section 7B
This section is for those who are either exempt or who submitted their visa application before 9 July 2012.

Also, Section 8 asks about English Language documents, do I just leave it blank as she doesn't have those documents, hence the visa extension application.

Under Question 2.3 tick the box that states "You require further leave to remain to obtain the relevant qualifications to meet the Knowledge of Language and Life in the UK (KOLL) requirements to apply for indefinite leave to remain"

I suggest you include an explantion in section 8B and also in a covering letter.
Briefly state her current timetable of study and test.

Brian, please note that your wife needs to submit her current English Language documentation to show that she has a level A1 passing grade. This is a requirement of FLR
What specific test did she undertake in order to get her UK visa?

Then the documents required with the app submission, all we have are a few bank statements for the past few months in our separate names,
not joint statements, no bills of any kind as the utilities are not in my/our name.

There's no mandatory requirement to demonstrate 2 years co-habitation for FLR(M) for spouses.
However I do suggest you submit whatever you have.
You'll need to work on this aspect anyway for future ILR.

Here's some ideas:-

Driving License
TV License
Electricity Bills
Gas Bills
Water Bills
Council Tax Letters/Bills
Bank/Building Society statements
Bank/Building Society letters
Marriage Certificate
Registry Office Letters
NHS medical cards
Letters from GP/Medical Centre
Sports club membership cards
Insurance Quotes
Letters from Church Organisations
National Insurance appointment letters
HMRC Communication/Letters (eg Tax Codes, P60's etc)
Personal letters from friends/family etc
Telephone/Internet bills/letters/statements
Mobile phone bills/letters/statements
Online shopping details of name/address
Tenancy agreement(s)
Letters or other documents from government departments or agencies.
Letters from Dept of Work and Pensions, DVLA etc
Letters from UKVI / Home Office