My university has strict limits too: 4 years for full-time PhD-ers, 6 years for part-timers. I'm part-time, and would have been allowed 7 years by my funding council (AHRC). But the uni deadline was tighter, and I managed to come within that with about 6 weeks to spare :)
Lots of unis are bringing in maximum timescales to prevent the 9 or 10 year an still not finishes PhDs. My uni has removed the writing up period and now has a 3 year (5 year part-time) submission timetable with a further 12 month until conferment. In exceptional circumstances relating to the nature of the research then they may consider an extension (but it is pretty rare and you have to submit chapters to prove you have been working at the appropriate pace) and you can suspend for a year due to ill health or other mitigating circumstances. I think they get penalised now if they people don't complete.
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