Citizenship of Kids

Hi, I have recently been granted Permanent residence this month, my wife was naturlized last month, we have three kids one born in 2008, second one born in 2010 and the third one born in 2014.

My wife never applied for Permanent residence, she is a EU national hence never bothered, and she directly applied for naturlization and became a British Citizen last month. She spent 5 years exercising treaty rights from 2006 to 2011.

I have been married for more than five years now and have been granted permanent residence now.

The problem is we wanted to apply for the citizenship of kids(naturlization), we have been told by our lawyer that we have to apply for naturalization paying the fees in the same way as my wife did, for the first two kids and for the third kid we can try and apply for the passport directly with my wife application but there might be a problem of him not becoming naturalized but could get a British Passport, but technically not a British Citizen.

Its a bit confusing, could someone please guide me as to what else could be done, do i have to apply for all the three kids for naturilization for them to become British, or is there any route which can save time and money and could help them become British Citizens.

See also here.