Can my New born daughter apply for British passport

[Gondo]

I was granted limited leave to remain in 2012 till November 2015 based on a Residence and contact order section 8 children Act 1989. This was for My first daughter I had with a British lady. I now live with my 8 year old daughter on full time bases. She is a British passport holder.
I have a second daughter who is just 4 months old with a woman who is an over-stayer. I have 2 questions.

1) Does my daughter qualify to apply for a British passport as she was born in England while I had a Valid Visa even if it was a limited Leave to remain ?

2) how do I get my over-stayer partner to be regularised / get a visa without going back home

Please help.

Gondo

[vinny]

1) No.