? about DVC expiration date

[DisneyBliss7]

What happens when the DVC expires? Why do the resorts have different ending years? So, in 2057 I no longer am a DVC owner even though we spent all the money to buy into them? We want to be able to pass it down to our kids. We aren't owners yet but in the process of becoming one.

 

[sonofanarchy]

That's just the way it is.

Resorts have different end dates because of when they opened. OKW, Boardwalk, Wilderness Lodge all end in 2042. AKV, Grand Floridian, BLT all end in 2057. Not sure about Saratoga or Beach Club.

 

[disneynutz]

Resorts are contracted for 50 years so depending on when they originally went on sale they end on different dates. Only Disney knows what they will do after the 50 years is up, but yes owners could end up with nothing.

Bill

 

[erionm]

Why do the resorts have different ending years?

DVD executes a ground lease with Disney for the property. Those ground leases are for approx. 50 years. DVD & Disney have extended the ground lease for OKW to 1/31/2057 (additional 15 years) and OKW owners had to pay if they wanted to extend their contracts.

 

[sonofanarchy]

Resorts are contracted for 50 years so depending on when they originally went on sale they end on different dates. Only Disney knows what they will do after the 50 years is up, but yes owners could end up with nothing.

Bill

So VGF doesn't end until 2063? Wasn't aware of that, but it makes sense.

 

[chalee94]

So, in 2057 I no longer am a DVC owner even though we spent all the money to buy into them?

DVC is structured more like a lease (although it is deeded, which adds a few tax benefits). at the end of the stated term, you own nothing and you owe nothing (when maintenance fees will be $20 per pt or whatever and your children might prefer to spend their money elsewhere anyway.)

there is a DVC resource thread stickied at the top of the forum which lists maintenance fees history and expiration dates and similarly useful information.

 

[Lynne M]

What happens when the DVC expires? Why do the resorts have different ending years? So, in 2057 I no longer am a DVC owner even though we spent all the money to buy into them? We want to be able to pass it down to our kids. We aren't owners yet but in the process of becoming one.

There's a phrase you'll hear around here: "The value of a timeshare is in its use". In other words, you would presumably have gotten your money's worth, and then some, out of DVC, by the time that end date comes.

Not the same thing, of course, but think of the difference between leasing a car and buying a car. When you buy a car, you purchase the physical object. When you lease a car, you are paying for the use of the car for a certain period of time.

That's what's happening with DVC. You are paying for the use of the DVC resorts for the next several decades. Look at the numbers, and see if having the use of the resorts for that period of time seems worth the money you would be spending.

 

[Dean]

What happens when the DVC expires? Why do the resorts have different ending years? So, in 2057 I no longer am a DVC owner even though we spent all the money to buy into them? We want to be able to pass it down to our kids. We aren't owners yet but in the process of becoming one.

HH, VB, OKW, BWV, VWL & BCV are all ending at the same time of 31 Jan, 2042 other than the OKW extension issue. It's called lease hold, we own the buildings and have the land leased then at the expiration it revert's back to the land owner who get the entire package back. One they got far enough along it didn't make sense to have them expire at shorter intervals so the new 50 yr lease was chosen as the new norm.

We don't know what Disney will do at the end, it really doesn't matter unless they extend it. Since the OKW extension wen't poorly, if they do extend it'll be much different and likely late in the process. The real question to me is what will happen the last 2-3 yrs we own because there are not enough villas to use all of the points that will be in play that last 1-2 years.

 

[ElizabethG]

So VGF doesn't end until 2063? Wasn't aware of that, but it makes sense.

VGF is 2064 and BLT is 2060

 

[crisi]

Another thing to keep in mind - do you want to pass the maintenance headaches (i.e. the expense) of a 70 year old hotel to your kids and grandkids? That is a long time in the life of a modern building (a short time if you are the Tower of London, but DVC doesn't build fortresses).

 

[Deb & Bill]

What happens when the DVC expires? Why do the resorts have different ending years? So, in 2057 I no longer am a DVC owner even though we spent all the money to buy into them? We want to be able to pass it down to our kids. We aren't owners yet but in the process of becoming one.

Even though my son is a lot older than yours, I would never think of saddling him with DVC member fees. He gets to enjoy the points with us. But he hasn't gotten a chance to enjoy them without us yet. Not sure that is going to happen. Ever.

When we bought in 1997 our OKW dues were just over $3. Now we pay about $5.50. And for the first five or so years, they stayed fairly constant. A few pennies up or down (the last time they went down). They will continue to go up exponentially in the future. Unless you also leave a pretty nice inheritance to your kids, don't plan on passing them on.

 

[OldsDr]

I am not currently in DVC i had to sell a few years back, but I am now looking into resales. I like the fact that in 2042 I will be at retirement age and the dues if I am an owner then will go away, great for retyirement planning. That is one of the reasons I am leaning to a 2042 resort. If am an owner when 2040 comes around and I think I want to continue I can look for a resale of a 2057 resort.

 

[Dean]

Even though my son is a lot older than yours, I would never think of saddling him with DVC member fees. He gets to enjoy the points with us. But he hasn't gotten a chance to enjoy them without us yet. Not sure that is going to happen. Ever.

When we bought in 1997 our OKW dues were just over $3. Now we pay about $5.50. And for the first five or so years, they stayed fairly constant. A few pennies up or down (the last time they went down). They will continue to go up exponentially in the future. Unless you also leave a pretty nice inheritance to your kids, don't plan on passing them on.

No heir has to accept any inheritance so they don't have to be saddled with it if they don't want. I realize there are other factors but they don't change the end point that an heir can refuse any inheritance.