Thanks for your question.
Your husband is a "british citizen otherwise than by descent" by virtue of having been born in the UK before 1983. He can apply for a passport straight away and need only prove his birth and parentage.
Your daughters are also entitled to UK citizenship. However, because they were born outside the UK they will have a slightly different type.
Citizenship is only permitted to descend one generation to children born outside the UK.
Therefore, your husband's citizenship is permitted to descend one generation to your daughters. They will have "british citizenship by descent". This is the same as your husband's citizenship in all respects and rights apart from that your children will not be able to pass on their own citizenship to such of their children that are born outside the UK.
Both your husband and daughters can apply directly for UK passports providing that they can prove their births and parerentage.
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