Kelsey Grammer is "happy and in love."

The 53-year-old actor and his lover Kayte Walsh - who started dating earlier this year following his split from wife Camilla Donatacci - are looking for the "perfect home" to raise their as-yet unborn baby .

He said: "We are really happy and in love. We're looking for a new apartment together in New York but we haven't found one yet. We're waiting for the perfect place."

Though Kelsey was forthcoming about their future plans, his partner was reluctant to talk about her pregnancy.

She told the New York Post newspaper: "We don't really want to talk about that at the moment."

The couple are apparently planning to make New York their home to coincide with Kelsey's ongoing appearances in Broadway show 'La Cage aux Folles'.

Kelsey's wife of 13 years Camille filed for divorce in July citing irreconcilable differences as the reason for the separation.

The former Playboy model - who has two children, Mason Olivia, eight, and Jude Gordan, five, with her estranged spouse - is reportedly requesting joint legal custody and primary physical custody of the children, as well as spousal and child support.

Kelsey - who is believed to be worth $85 million - is allegedly not offering spousal support and is requesting Camille receives none of his earnings from before the marriage.