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As you can see, there does not seem to be any requirement for the parent to remain settled in the UK.Section 1 of the British Nationality Act 1981 wrote:(3)A person born in the United Kingdom after commencement who is not a British citizen by virtue of subsection (1), (1A) or (2) shall be entitled to be registered as a British citizen if, while he is a minor—
(a)his father or mother becomes a British citizen or becomes settled in the United Kingdom; and
(b)an application is made for his registration as a British citizen.