Citra Living owned by Lloyds Bank, recently unveiled their Pathways program, offering a new way for those who are often locked out of the housing market to find their way onto the property ladder. 

The scheme was launched alongside 26 new Buy-To-Rent (BTR) homes iCitra Living owned by Lloyds Bank, recently unveiled their Pathways program, offering a new way for those who are often locked out of the housing market to find their way onto the property ladder. The scheme was launched alongside 26 new Buy-To-Rent (BTR) homes in Clay Cross, Derbyshire, and will allow tenants to rent their homes until they are ready to take the next step with shared ownership.

Altogether Citra Living has acquired 68 homes at the Keepmoat Homes Coney Green site in Clay Cross, between Chesterfield and Mansfield. The development offers a wide range of family homes, including 6 three-bedroom homes, 17 four-bedroom homes, and five two-bedroom homes, all meeting the latest standards for energy efficiency.

Who can use Pathways?

Pathways is a shared ownership scheme, available to UK residents who don’t already own another property. The scheme is available to those who have owned a home in the past and are currently trying to find a way back onto the property ladder.

The properties are available to rent for up to three years, and unlike other BTR properties if customers wish to keep their home they can start the shared ownership process any time after their first three months of rent. Customers also have a lot more freedom in their BTR properties than that in typical rental properties, you can decorate it fully to your taste and even buy and keep pets if you really want to make the property your home.

How do you buy the full property?

This Shared ownership program allows customers to buy an initial stake of the property from 25% to 75%, and pay rent on the rest of the home as applied. Moving forward, customers can purchase more and more of their home when they see fit, decreasing the rent in turn as they increase their ownership of the property, in a process called staircasing.

Previously, shared ownership owners had three applications to buy the rest of their property, with their last application resulting in the remaining shares of the property. However, after changes were made to the policy there is now no limit on the number of times an owner can staircase, giving you much more flexibility should you want to pursue buying more shares in your home.

Do you pay Stamp Duty on staircasing?

When purchasing the property, you will be given the option to pay your Stamp Duty Land Tax in either one payment at the time of purchase or to pay it gradually as you buy more shares in your property.

If you choose the latter, you won’t have to pay any more Stamp Duty until you own over 80% of the property, when you’ll pay the tax on further transactions.

Mortgages for the scheme will initially be offered through an exclusive partnership with Halifax.

Andy Hutchinson, MD of Citra Living, said: “Our focus is on working with leading developers to add much-needed good quality homes for families and professionals to the rental market in the places people want to live, but we also recognise that we have an opportunity to help more people get on the housing ladder.

“Renting is the right choice for many people, but circumstances change, and they may later want to put down long-term roots in an area and buy their own place. Pathways by Citra Living gives renters flexibility; having rented a property, they have the option to buy the place they’ve made their home rather than looking elsewhere. Shared ownership means they can do that in stages, which lowers the hurdle that getting a deposit together can be.”their home rather than looking elsewhere. Shared ownership means they can do that in stages, which lowers the hurdle that getting a deposit together can be.”