Contract Expiration Question

[chrisw127]

Hi. I hope you don't mind me asking such a basic question here, but the way I understand it, ownership at most of DVC properties at WDW will expire in 2034 (?). Does anyone think that DVC owners will be able to renew these contracts or add on, much like they did Saratoga Springs (or at least I think it was SS). I am interested in buying a resale at VWL, but BLT is becoming more attractive due to the longer contract (although not due to the price).

Thanks.

 

[CarolMN]

AFAIK, the earliest contract expiration date is January 31, 2042. That's for BWV, BCV, HHI, VB & VWL. OKW was recently extended - I think until 2057.

No idea if Disney will extend the contracts.

 

[hellerjw]

The earliest contracts expire in 2042, not 2034. The newer resorts (SSR - 2054, AKV - 2057, BLT - 2059?) are even further out. The only older resort to have offered an extension was OKW and that was for 15 years to put it in line with AKV, one of the newer resorts. There is some speculation that they will offer extensions on the other older resorts too but nothing has been offered yet.

Nobody really knows what Disney will do at the end of all these contracts. They probably won't continually offer extensions because even once these original expirations come around the buildings will be very old and the maintenance on them will continue to skyrocket. It would most likely be more economical to simply tear them down and build something new which they can sell at a premium.

 

[mitros]

Wow, since I'll be 95 when our contract expires, I'm probably one that won't worry about the situation..........

 

[chrisw127]

Thank you both for the information.

 

[RobDoc]

BLT is set to expire on January 31, 2060. AKV and OKW (extended contracts) will expire on January 31, 2057. SSR will expire on January 31, 2054 and all other DVC resorts are presently due to expire on January 31, 2042.

Nothing has been stated from DVC about the possibility of extending any other resorts, except for OKW which has already had that option.

 

[Mississippian]

Remember, any extra years beyond 30 have virtually no value. So for example, if someone offered to extend your contract life from 30 years to 300 years, it really would only be worth about $6 per point, at most.

 

[chrisw127]

Remember, any extra years beyond 30 have virtually no value. So for example, if someone offered to extend your contract life from 30 years to 300 years, it really would only be worth about $6 per point, at most.

Why is that? I think the math might be too much for me.

 

[Mississippian]

Why is that? I think the math might be too much for me.

The present value of a dozen extra years of rooms (or several dozen years of rooms) to be received more than 30 years in the future just isn't very high when you look at it from a present value of money standpoint. When you also calculate the fact that you are having to pay in maintenance fees every year, and the extra years just aren't worth anything except as a tiebreaker if two resorts are truly equal to you.