Complete the sentence with the construction that itself signals a discontinued past state, using the verb in brackets: Niko lives in Bristol now, but he ___ (live) in a cottage near York.

Explication

The prompt asks for the construction that itself marks the state as over, and only used to live carries that discontinuation inside the verb phrase. The bare past simple also fits the time frame but relies on the surrounding contrast instead of marking discontinuation itself, and habitual would is unsuitable because live denotes a state here.