Could someone tell me about OKW Extension?

[Coamfo]

We just bought a BWV resale because we love it there. I've read a couple comments about the extension of OKW that sounded negative. Like "we know how that went" in reference to the extension.

My question is, was it a rough process? Over priced? We're in our mid thirties with young children now, and we're hoping they extend BWV in the future. I'm curious how much they charged current DVC members at OKW. Was it reasonable?

Thanks so much!

 

[bwvBound]

Forgive me for answering with links ...

http://www.disboards.com/threads/dvcs-old-key-west-extension-ordeal.3078317/
http://www.***********.com/forums/showthread.php?t=11238 (meh. never mind ... I also scrubbed a few other links that were 'outside' and not permitted; hopefully there is sufficient context here on Disboards archives.)

Note the original offer was set for $25/point for the 15 year extension with a trigger, "If you buy NOW ... it is $15/point." The contract wording used "Opt-OUT" language rather than "opt-IN." Current owners were "demanded" to decide, sign and return irrevocable paperwork. Kinda rude.

 

[Coamfo]

Thanks so much!

 

[Dean]

Forgive me for answering with links ...

http://www.disboards.com/threads/dvcs-old-key-west-extension-ordeal.3078317/
http://www.***********.com/forums/showthread.php?t=11238 (meh. never mind ... I also scrubbed a few other links that were 'outside' and not permitted; hopefully there is sufficient context here on Disboards archives.)

Note the original offer was set for $25/point for the 15 year extension with a trigger, "If you buy NOW ... it is $15/point." The contract wording used "Opt-OUT" language rather than "opt-IN." Current owners were "demanded" to decide, sign and return irrevocable paperwork. Kinda rude.

There was also an "or else" which was a special assessment, something the POS doesn't give them the right to do for this purpose as I read it. I realize they were backed in to a corner given they had tied the membership to the land use rather than just having a simple expiration but it was heavy handed and over priced and likely not legal.

 

[schoen]

My family had absolutely no issues with the extension, we were actually quite pleased it was offered. Just like anything else, plenty of folks were fine with it, some were annoyed by it.

 

[Dean]

My family had absolutely no issues with the extension, we were actually quite pleased it was offered. Just like anything else, plenty of folks were fine with it, some were annoyed by it.

Apparently most weren't OK because most didn't extend, only roughly 1/3 by accounts. It was not a good deal financially even at the reduced price of $15.

 

[schoen]

For us it made perfect sense, the extension gave us points that will last until the youngest in our family is 70 so she'll have points for the majority of her life, plus she will potentially be able to take grandkids. It was some money, but it wasn't a crazy amount, and looking at how points were, and continued to rise to this day- we feel it was a tremendous value. We're grateful they did it and are buying more extended points right now because we use them so much.

Again, what felt like a great idea and value for my family, and has worked out beautifully, it may not have been a great solution for everyone. It's the way of the world!

 

[_auroraborealis_]

I think the wild card becomes that they only extended 1/3 of the resort or so in that extension. If the other 2/3 RTU in 2042, how will that be handled?

 

[Dean]

For us it made perfect sense, the extension gave us points that will last until the youngest in our family is 70 so she'll have points for the majority of her life, plus she will potentially be able to take grandkids. It was some money, but it wasn't a crazy amount, and looking at how points were, and continued to rise to this day- we feel it was a tremendous value. We're grateful they did it and are buying more extended points right now because we use them so much.

Again, what felt like a great idea and value for my family, and has worked out beautifully, it may not have been a great solution for everyone. It's the way of the world!

Predictably the price difference hasn't held up to the up front cost, more like half. Plus there are issues with the resort once the 2042 owners drop out. DVC may work them out, we simply don't know at this point, but they do represent risk.

 

[schoen]

I wonder if Disney has the ability to extend contracts themselves when they purchase them during ROFR? on the resale market it is rare to come across an extended OKW contract (though certainly not unheard of). We are purchasing an add-on direct through Disney and they made it seem like the extension was not an issue at all, and found us the exact contract we wanted with no issues. I wondered if they have the ability to just "decide" to extend those contracts?

 

[Dean]

I wonder if Disney has the ability to extend contracts themselves when they purchase them during ROFR? on the resale market it is rare to come across an extended OKW contract (though certainly not unheard of). We are purchasing an add-on direct through Disney and they made it seem like the extension was not an issue at all, and found us the exact contract we wanted with no issues. I wondered if they have the ability to just "decide" to extend those contracts?

Yes, they resell those as 2057 contracts. All contracts are extended, it's just a question who owns the extension.

 

[Chuck S]

I'd be curious to know the percentage of members at the time that did extend. I did not, as I don't have kids and will be in my 80s when the 2042 date rolls around. But, for those younger members with kids/grandkids, they may have chosen to extend and were probably happy that they could do so.

 

[chalee94]

But, for those younger members with kids/grandkids, they may have chosen to extend and were probably happy that they could do so.

Or...

Instead of extending at $15 or $25 per pt for pts they couldn't use for 30+ years, they could have added on a smaller number of pts to use right away.

This was more of a consideration for me.