Child born in the UK doesn't need Visa/Permit to stay in the UK. But if the child travels outside the UK then the child needs Visa/Permit to enter back into the UK.
So whether the child has a passport or not, has valid (PBS or non-PBS) leave or not, or whether dependant leave will expire on the day you apply for settlement or 2 years down the line - is all immaterial. If you do not include the child in your settlement application and the child's current leave expires before he/she becomes entitled to be registered as British citizen, the overstay won't affect the child's entitlement for British citizenship, if/when you're granted ILR.
Child born in the UK after either parent has been granted settlement: Is a British citizen by birth
22246891 wrote:Thank you Greenie and nmaj for your quick replies. Just to clarify, I am aware of my son's right to British citizenship and hence why I didn't include him in our ILR application. My concern is his overstay as he currently is still not formally a British citizen (or at least not registered as one) and at the same time he has no permit to stay or UK (expired 2 weeks ago)!
Assuming I did explain myself well enough on my first post and that your replies were based on that, I believe we should have no problems when I submit the MN1 form this weekend.
Many thanks