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My Fiance's Parent's second house is currently for sale.

They have agreed to let us live there until it does sell.

(They do not live there and no one else currently does)

They also said they will give my fiance the money from the sale of the house to help buy his own place etc.

Can we apply for a fiance visa with this as our residence? Advice?

If we can apply with this as our residence do we need a property inspection?
 

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I can't see any problems there. There is no need to declare that the house is currently on the market, so just provide the usual evidence of letter offering the use of the house, home ownership such as Land Registry document, and a utility or council tax bill. No need for property inspection as it isn't shared with a third party.
 
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