Family visiting me - accommodation provided by aunt !

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Hi
I am on Indefinite leave to remain and my parents are planning to visit me this summer on Family visit visa. I have few questions and doubts around accommodation.

I live in one bed flat with my wife which means that i need to arrange an accommodation for my parents. my aunt who lives near by my place is happy to accommodate them in her house (3 bed property - freehold). She lives with her son hence they have enough space to accommodate my parents.

Question-
1. Is it possible for me to use her address details as a place of accommodation? I guess i will need a letter from her to confirm but what else would i need from her apart from a consent letter.
2. will this create an unnecessary complex case for a simple 6 months visit visa? shall i just book a hotel?

many thanks in advance