An extract registered lease allows a landlord to recover arrears by using summary diligence (charge for payment, arrestment, attachment). That is because a registered lease has the same force and effect as a court decree. If a landlord holds a registered lease, it does not have to raise court proceedings to recover its arrears. That saves time and cost.
Like a court decree, however, the extract registered lease can only be used by the landlord named on the lease. That's not much use if you are not the original landlord.
Thankfully, there is a solution: a section 88 stamp.
What is a Section 88 stamp?
A section 88 stamp is a stamp by the Court of Session on the front of the lease that authorises the new landlord to use the extract registered lease in the same way the original landlord could use it.
How is it done?
A written application is submitted to the court. The new landlord requires to prove to the court that they are the owner of the property and that the leased subjects form part of the property.
If the court is persuaded, it will stamp the lease with the new landlord's name. The stamped lease can then be used to recover the arrears.
Timescales and cost
The Court will usually take around one to two weeks to process the application and return the stamped lease.
The cost of the application is normally £600 plus VAT and the court fees of £19.
We'll often be asked to arrange for a lease to be stamped when a tenant is in arrears and a landlord wishes to recover those arrears. The section 88 application will inevitably cause a delay. That delay could be the difference between recovering something from the tenant or nothing at all.
It is possible to apply for a section 88 stamp as soon as a landlord buys a commercial property or if it thinks it might need to enforce the lease in the future. In doing so, the landlord will save time and give itself the best possible chance of recovery.