Mark, the pistol, at some time in the past, travelled through England and was proofed there. The pistol is an LP08 or Langepistole 1908. This model of Luger was issued to artillery and machinegun troops initially and later in 1917 was given to shock troops as well. 1917 is the most common date of LP08.
Very few LP08's saw service in WWII. Your grand dad probably picked this pistol up in England. The magazines are post WWII commercial jobs. The holster is non standard and very interesting. The holster may be worth as much as the pistol.
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