Overstayer married to a British Subject

[kully10]

I came across a couple a few weeks ago, who have recently got married and very much in love. The catch here is that the husband is an overstayer, and she ( British subject doesn't work). Having read through the forum here I have come to the conclusion that he doesn't stand a chance, he will have to go back to his country of origin and apply from there.
Please in relation to the following:-
1. He lost his passport some years ago, should he report to the police?
2. Should they apply for a civil marriage licence? They request an ID which he can not supply
3. His wife suffers from severe of depression, can he apply for leave to remain on discretionary basis on grounds of her ill health?
4. Are there any sample forms that can be accessed as how to fill them?

Thanks in advance