Citra Living opens Pathways to home ownership

Citra Living, part of Lloyds Banking Group, has launched a trial of Rent to Buy (RTB) homes near Clay Cross, Derbyshire. The scheme will see an initial allocation of 26 of Citra’s newly built rental homes available to buy through its pilot private shared ownership scheme, Pathways by Citra Living.

The ‘Pathways’ scheme is aimed at helping would-be homeowners, who might otherwise struggle to get on the housing ladder due to needing large deposits,  Pathways allows them to rent a home for a period that suits their needs, then, when they are ready, they can buy their home through shared ownership.

Citra Living has acquired a total of 68 homes at the new Keepmoat Homes Coney Green site in Clay Cross, between Chesterfield and Mansfield, which will be available to rent from the Spring. The development offers a range of family homes including: 6 three-bedroom homes, 17 four-bedroom homes and five two-bedroom homes, each meeting the latest standards for energy efficiency.

How Pathways works

Pathways is open to potential homeowners who:

  • Don’t already own another property
  • Have the right to live in the UK

Once the customer has chosen their property, they can rent for up to three years. With Citra Living, and unlike some agreements, customers can make it their home – they can keep pets and decorate it to their taste. If they decide they want to buy their home, they can start the shared ownership buying process any time after the first three months of their rental agreement.

Customers can buy between 25% and 75% initially and rent is charged on the balance. Having bought the first share of the home, Customers can then buy more shares in the future – this is called “staircasing” and allows the homeowner to eventually buy their home outright. As they buy shares the rent paid on the balance will reduce, and if they increase their share to 100% the freehold is transferred to them.

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