I am not sure how strict is BA with addresses. As long as BA thinks that they reside with you (and why won't they) you should be fine. Surely, with some UK members "moving" themselves to Europe to attain status quicker, it does not seem to be a problem.
And, David-A is correct - you will not get the miles yourself but you will be able to use the miles of your family members if they are in the household account with you.