Property abroad

LA_EK

My mum died recently. She had a holiday home in Spain with an outstanding mortgage which will be paid off with an insurance policy. She died without leaving a will so in Spanish law the property automatically passes to my dad. However, Spanish inheritance tax rates for non-residents are high, so in order to minimise costs, my dad plans to renounce his full share of the property and transfer a third to my sister a third to me and a third to himself. It's in the hands of his Spanish lawyer at the moment but within the next couple of months I will own outright a third share of a property worth approximately £150K. For all intents and purposes it's still my dads apartment - he will continue to holiday there and eventually retire there and live in the apartment full time, he will continue to pay the associated bills and fees, the two thirds have been passed to my sister and I purely to minimise inheritance tax.
I do not own a property in the UK but my husband and I plan to buy in about six months time. I would assume that I will need to tell any potential lender about this property but was wondering how they would view it? Will they see it as an asset or liability? The property is only used as a holiday home and is never let out so does not generate any income, however there are associated costs i.e. electricity, water, community fees etc. which although my dad will continue to pay for, technically I suppose they would see me as being liable for a third of these. I am doing this as a favour to my dad - (although ultimately it will save my sister and I money in inheritance tax when my dad passes on and we inherit the rest) but I am slightly worried that it will have a negative impact on my mortgage application.

silvercar

Sorry for your loss.

I wouldn't mention it.

At the moment it is still part of your late mother's estate and not yet yours. Knowing how slow the Spanish legal system is, I doubt that in 6 months time the property will be in your name.

LA_EK

Thanks silvercar. Yes, that would be one way around it, the lawyer did say that it could take some time. Here's hoping that its not transferred in time.

LA_EK

Does anyone else have any thoughts on this? Had an email from the Spanish lawyer today and it looks like the property will be transferred over to us within the month.