My wife too had one previously, including ILR. We left the UK in 2004, and then they changed the law!. So in answer to your question, yes she can apply again. My wifes grandmother was born in UK. The documents my wife sent off were - Birth certificate for Grandmother, her mother and herself. Then our marriage certificate. We obtained grandmother birth certificate online thru www.gro.gov.uk -She also provided photocopy of her old passport showing her original Ancestry Visa (took copy to the biometric apt, and the certified all documents that she wanted to submit at a cost of $5 each. Take photocopies of all documents that will be submitted with application, then take both original and copies to apt, they will certify for you, then you can take your originals home with you) If you get them to photocopy docs they will charge you even more.