2042 Expiration

[deedubb]

Some other food for thought. Very few who own the contract upon expiration will be the original owners. There may be a slight discount for existing owners, but I don't think Disney is going to do anything extreme because of their "loyal" customers. The loyal customers are already likely dead and the current owners are heirs or resale purchases. The former hasn't purchased the loyalty and the later Disney is at war with.

Yes, but the way I see it, current owners regardless of whether they are original or resale ARE loyal Disney customers who clearly love the parks and want to visit over and over again. Each visit means more sales of food, souvenirs, park tickets...ie. more money in Disney's pockets.

 

[RoseGold]

I only want to hold for like 10 years, and I'm still not sure the math works. They are just so overvalued compared to the cheap, easily sold points at SSR.

 

[eileenkeeney]

IF DVC did not extend all OKW contracts, why are they requiring folks to sign away the extra 15 years when they sell, if this has not already been signed? I didn't sign, as I felt that I had not asked them to add 15 years, and I was content with my contract as it was, and didn't think I should have to sign anything new. It required a certified signature, which I considered a hassle. However, when(if) I sell, they can make things hard for me by delaying the transfer of ownership, meaning points possibly expiring. Or they can just exercise ROFR and problem is solved. I am wondering if the recent ROFRs on some of these contracts is related to the owner not having signed away the extra 15 years.
I think it might be fun to attempt to make a reservation that goes just a few days beyond the expire date, and see what happens. But I will be really old by then, possibly too old to comfortably (or safely) travel, and possibly dead. But I have also thought that I might want to expire with my contract, while enjoying the view from an OKW balcony. I love those balconies.

 

[RoseGold]

IF DVC did not extend all OKW contracts, why are they requiring folks to sign away the extra 15 years when they sell,

I guess it depends on who "they" is? Obviously, any title company is going to require the quitclaim, and they are still be filed all the time with sales. The title company does not want to fight about this in 2042.

But I guess you could sell private party without it?

It's a bad argument as a buyer, because you have all the new documentation, which I'm sure buttons this up. It's the original purchasers who never signed that are the interesting ones.

 

[LynJ]

We bought a 2042 resale a handful of years ago, following the "buy where you want to stay" advice. We absolutely adore Wilderness Lodge and don't regret BRV at all. We go over the holidays most years, and frankly we need the 11 month home resort window to get it.

Would I still do it now? For the current BRV prices, absolutely. Probably not for BCV. As much as the pool is fun, it's overpriced, and we enjoy the BRV environment more. We didn't buy expecting to have an asset to sell or pass down. We did it to lock in prices for a resort we love and enjoy family time, and I expect we'll happily use it until 2042.

 

[CarolynFH]

I guess it depends on who "they" is?

DVC is requiring the seller to sign a quitclaim to the extension as a condition of sale. So the buyer has no grounds to expect their ownership to continue beyond 1/31/2042.

 

[Cfabar1]

DVC is requiring the seller to sign a quitclaim to the extension as a condition of sale. So the buyer has no grounds to expect their ownership to continue beyond 1/31/2042.

it will be fascinating to see how that all plays out... I look forward to some two bit lawyer trying to create a class action lawsuit for these sellers saying disney forced them to sign these quitclaim deeds under duress....

I wonder why DVC was unable to require the purchasers to buy the 15 year extension, and if they were unwilling to buy the extension take up the contract via ROFR... Every 2042 contract is a loose end for disney it seems....

 

[Sandisw]

it will be fascinating to see how that all plays out... I look forward to some two bit lawyer trying to create a class action lawsuit for these sellers saying disney forced them to sign these quitclaim deeds under duress....

I wonder why DVC was unable to require the purchasers to buy the 15 year extension, and if they were unwilling to buy the extension take up the contract via ROFR... Every 2042 contract is a loose end for disney it seems....

The way it worked was that all contracts were extended and owners were told that they owed the extension fee…tried it under a special assessment.

The quit claim deed was offered as a way to satisfy the money due, if someone didn’t want to pay.

People fought it and said DVd didn’t have the authority to level a special assessment for this..and they ended up backing off trying to collect it or the quit claim deed.

Now, when an original owners sells, they sign it…because they are selling, I don’t think it matters to sign it at that point.

That’s why none of those people will come back to Disney. The interesting part will be those who did neither….technically the contract is extended…but if you read the actual letter that owners received, they still owe so what i wonder if any owner would be allowed to pay to keep it?

 

[BarlowFamily]

I would consider a 2042 resort IF I knew:
a. That Disney would offer an extension option for current members
AND
b. What that option would cost?

I do believe that extensions will be offered as they were previously at OKW, since trying to resell several resorts all expiring in 2042 at the same time does not make sense to Disney, however I expect them to come back at a much higher cost per year for the renewal - perhaps a 10 year term at $30-40/point (or more by 2042!), as opposed to the 15 years for $15 that OKW owners were previously offered.

I'm also concerned that the high relative value of BCV could cause Disney to decide to take the entire resort back in 2042 either for resale or to convert back into a traditional resort, or to charge a higher renewal price as we see with the variable direct pricing for sold out resorts, while others like Boulder Ridge or Old Key West would be more advantageous for DVC to just renew and enjoy a steady flow of renewal income without costs of developing and selling a whole new resort.

Buying 2042 resort contracts, either direct or resale, would be much more attractive if Disney were to have an "add-on" option available at closing with an established price so you know exactly what your options will be beyond 2042 at the time you're looking to purchase.

I plan on using my contracts for a long time, potentially past 2042, but I also have some security in the fact that my 2054 contract will likely hold value for a longer period than the 2042 resorts, which will likely start to significantly drop in value without a renewal option over the next 10 years. There becomes a point when the value proposition is no longer there to spend $130, $150, or $170 per point on a resort, plus maintenance fees, with only a few visits left on it, especially for someone who may be buying a smaller contract with the intent to only use every other year.

Do you remember details from the OKW extension offer? Was the offer made to resale owners as well as direct? Were resale owners who took the offer considered direct owners after?

 

[CarolynFH]

Do you remember details from the OKW extension offer? Was the offer made to resale owners as well as direct? Were resale owners who took the offer considered direct owners after?

Yes, it was offered to all owners. It wasn't a perk, it was a "special assessment" (a required expenditure) - and owners fought back.

At the time, DVC didn't distinguish between direct and resale buyers. All DVC owners got the same perks. But again, this was not a "perk".

 

[Blerghityblergh]

We ran the numbers and realized in order to make it a financial value, we’d have to buy at about half off where the market is now (obviously not going to happen). We would only do it if we really wanted to stay there and currently I think we are plenty happy at the other resorts (although many of those 2042s do look awesome!). If we want to try beach club or boardwalk we are also open to renting points at 11 months.

 

[Sandisw]

Yes, it was offered to all owners. It wasn't a perk, it was a "special assessment" (a required expenditure) - and owners fought back.

At the time, DVC didn't distinguish between direct and resale buyers. All DVC owners got the same perks. But again, this was not a "perk".

I think this is the part that even I didn’t realize until someone posted recently what was actually sent to owners.

It was basically, we did this, you all owe the fee, and if you don’t want to pay that, we will allow you to satisfy the amount you owe by signing the quit claim deed to give up your right to the extension.

It wasn’t a choice to extend or not…it was a choice to pay it or quit claim it.

 

[BeachClub2014]

I think this is the part that even I didn’t realize until someone posted recently what was actually sent to owners.

It was basically, we did this, you all owe the fee, and if you don’t want to pay that, we will allow you to satisfy the amount you owe by signing the quit claim deed to give up your right to the extension.

It wasn’t a choice to extend or not…it was a choice to pay it or quit claim it.

It would be fascinating to learn what percentage of OKW contracts are still in play in this regard.

 

[Sandisw]

It would be fascinating to learn what percentage of OKW contracts are still in play in this regard.

The last number I saw which may have been 5 years ago it was still a decent amount….around 40%???

But, lots of OKw 2042 have sold and at least some of those had to be original owners.