If Disney does an extension on a DVC resort after you bought that resort on resale, would the extension apply to the resaler's too?

[CATANDSAL1009]

Curious, if Disney does an extension on a DVC resort and you bought that resort on resale before they extended the expiration- would the extended expiration apply to those who bought into that resort?

 

[miTnosnhoJ]

Disney has only tried one extension (at Old Key West). It was offered to both direct and resale buyers. Very few took advantage of it, creating legal problems for Disney. For that reason, it is unlikely that they will offer extensions in the future.

 

[CATANDSAL1009]

Disney has only tried one extension (at Old Key West). It was offered to both direct and resale buyers. Very few took advantage of it, creating legal problems for Disney. For that reason, it is unlikely that they will offer extensions in the future.

Good to know. I didn't know that. I was curious bc I had seen a post on fb where someone suggested Disney possible extending contracts that end in 2042.

 

[AaronEuth]

Good to know. I didn't know that. I was curious bc I had seen a post on fb where someone suggested Disney possible extending contracts that end in 2042.

The OKW extension was a huge mess legally, Disney basically extended every owner (at the time) due to not understanding how their own land lease worked. Plus, so few people did it, that now Disney is worried about a huge problem in 42, when they may end up owning 75 percent of the resort. Unfortunately, they will own a random sampling 75 percent and sharing with extended owners, so won't be able to do major changes to what they do own. That's why they ROFR so many okw contracts, so they can extend it and resell it so matches up with the rest.

TLDR:. They won't extend any 2042s, they will renovate/rebuild and sell new contracts instead.

 

[MICKIMINI]

Agreed that there will be no extensions. Heard this two days ago when chatting with a rep at BLT (the rep offered it up...I didn't ask). "It was a good deal but not enough members bought it".

 

[Ruttangel]

OKW is a real issue. I wouldn't be surprised to see an extension offered around 2035-2040. It would have to be a super low offer to get people to commit but it would get DVC another 15 years dues covered.
At the minute their plan is to be super aggressive in ROFR and keep OKW as lowest direct purchase....I’m not sure that will get enough switched to 2057

 

[drusba]

The OKW extension, which was offered in 2007, has been, to a significant extent, a disaster for DVD (the sales arm of DVC) because doing an extension needs to have most owners actually purchasing it. Otherwise, you can end up with a resort that will, for example, expire for half the owners in one year and the other half in another year not too long after, leaving DVC with the need to sell the expired half with too few years to sell. That appears to be what may happen to OKW, with its original expiration date in 2042, and the extended date of 2057, meaning DVD may potentially be stuck with a huge amount of inventory in 2042 to sell with only 15 years left until the resort's second end date.

Another likely result of the OKW extension disaster, which has been true so far, is that DVD will not do an extension at another resort. When the 2042 resorts expire, it will likely just redo the resorts to some extent and then sell them new with 50-year contracts, likely at a very high price per point and, even more important, with a lot more total points to sell because total points per unit will be significantly increased, meaning purchasers will need a lot more points per night to stay at the redone resorts than the existing owners pay. Possibly, DVC will offer a minor discount price to existing owners at the time, but that may be questionable both because many of those owners may not want another 50-year contract, and the likelihood that the majority of owners at that time will be resale owners, in relation to which, in the last 10 years, DVD has done nothing but demonstrate its hate of resale purchasers.

 

[Brian Noble]

I had seen a post on fb where someone suggested Disney possible extending contracts that end in 2042.

As many others have said:

TLDR:. They won't extend any 2042s, they will renovate/rebuild and sell new contracts instead.

"It was a good deal but not enough members bought it".

Maybe the owners collectively understood the value better than this Guide thinks. The very modest spread between unextended and extended resale contracts suggests the owners were correct.

 

[havoc315]

The OKW extension, which was offered in 2007, has been, to a significant extent, a disaster for DVD (the sales arm of DVC) because doing an extension needs to have most owners actually purchasing it. Otherwise, you can end up with a resort that will, for example, expire for half the owners in one year and the other half in another year not too long after, leaving DVC with the need to sell the expired half with too few years to sell. That appears to be what may happen to OKW, with its original expiration date in 2042, and the extended date of 2057, meaning DVD may potentially be stuck with a huge amount of inventory in 2042 to sell with only 15 years left until the resort's second end date.

Another likely result of the OKW extension disaster, which has been true so far, is that DVD will not do an extension at another resort. When the 2042 resorts expire, it will likely just redo the resorts to some extent and then sell them new with 50-year contracts, likely at a very high price per point and, even more important, with a lot more total points to sell because total points per unit will be significantly increased, meaning purchasers will need a lot more points per night to stay at the redone resorts than the existing owners pay. Possibly, DVC will offer a minor discount price to existing owners at the time, but that may be questionable both because many of those owners may not want another 50-year contract, and the likelihood that the majority of owners at that time will be resale owners, in relation to which, in the last 10 years, DVD has done nothing but demonstrate its hate of resale purchasers.

I'm guessing, in 2042.... DVD rents there unused inventory back to Disney for cash rooms. Then as they approach 2057, they can completely re-think the use of the resort.

 

[CarolMN]

Curious, if Disney does an extension on a DVC resort and you bought that resort on resale before they extended the expiration- would the extended expiration apply to those who bought into that resort?

The short answer to your question is yes. Method of purchase, resale or direct, will not matter.

But FWIW, I don't think Disney will extend any of the 2042 resorts, either .

 

[DougEMG]

I wonder if Disney will try to get OKW owners to extend once we get closer to that 2042 date. If they were desperate and offered a good deal on the price I would be tempted, I've got 620 un-extended OKW points.

 

[kilik64]

I wonder if Disney will try to get OKW owners to extend once we get closer to that 2042 date. If they were desperate and offered a good deal on the price I would be tempted, I've got 620 un-extended OKW points.

There is the belief that all the original direct 2042 OKW owners are already extended. They had you either buy the ext or sign a quit claim confirming your ownership interested ended in 2042. There are owners who DID not sign the quit claim that might have a decent legal position to be able to continue their contract through 2057 (still paying MF) without having to have paid for the ext price.

This would only apply to original owners since if you have not signed the quitclaim when you resale a 2042 contract, thats part of the closing is to sign that I believe as part of the ROFR.

2042 will be interesting for OKW for sure.

 

[RoseGold]

I wonder if Disney will try to get OKW owners to extend once we get closer to that 2042 date. If they were desperate and offered a good deal on the price I would be tempted, I've got 620 un-extended OKW points.

There are people who already unleashed lawyers, when DVC was harassing people for quitclaims. At that time, DVC backed down, which is unheard of. I think this is a substantial group of people, with some resources to fight.

If I were in this group, I'd absolutely be holding for now.

Edit to add: and I’d be tracking some of them down. Wouldn’t surprise me if some of them have a plan.

 

[perchy]

There's an awful lot of resorts expiring in 2042. You'd think they'd want to scatter this a bit more. That's too many resorts to simply shutter.

And, ROSEGOLD, what's a Saratoga SAP? I have tried to figure out SAP to no avail.

 

[DonMacGregor]

There's an awful lot of resorts expiring in 2042. You'd think they'd want to scatter this a bit more. That's too many resorts to simply shutter.

And, ROSEGOLD, what's a Saratoga SAP? I have tried to figure out SAP to no avail.

SAP = "Sleep Around Points". It's the idea that you can buy less-expensive points at a resort like SSR, but use them at other resorts at the 7-month window. With SSR, because of its size, you are safe in booking a room at 11 months, then switching to another resort at the 7-month window because you are more or less assured a room at your home resort. Works well if your travel window and room preferences allow you to utilize the points at non home resorts. There are numerous owners who have SSR contracts that have never actually stayed there.

 

[Sandisw]

There's an awful lot of resorts expiring in 2042. You'd think they'd want to scatter this a bit more. That's too many resorts to simply shutter.

And, ROSEGOLD, what's a Saratoga SAP? I have tried to figure out SAP to no avail.

Sleep around points. They may be expiring but it makes sense for them to just renovate and sell as new.

I could see them giving people who buy a chance at the new place a chance to stay after 2042 as they renovate. For example, you buy BWV for the new contract. But while they are renovating, you get to stay at BCV with your points since that’s an expired resort too. As rooms finish, then you stay at your own resort. They could actually work on both BCV and BWV at the same time in sections

 

[kdm31091]

I think the closest thing to an "extension" will be offering current members a probably fairly small discount on purchasing new contracts at the renovated BWV/BRV/etc. Of course, most who have held the 2042 resorts for a long time will not want to sign on for another 50 years, which is why a 10 or 15 year extension option would be nice - but I think sadly, it's unlikely.

But it's still 20 years out and unlikely the decision has even been made for sure one way or the other yet.

 

[davidl81]

I think the closest thing to an "extension" will be offering current members a probably fairly small discount on purchasing new contracts at the renovated BWV/BRV/etc. Of course, most who have held the 2042 resorts for a long time will not want to sign on for another 50 years, which is why a 10 or 15 year extension option would be nice - but I think sadly, it's unlikely.

But it's still 20 years out and unlikely the decision has even been made for sure one way or the other yet.

I think the odds of BWV and BCV being extended is basically 0. Those resorts are likely the best locations on property and the demand will be huge for Disney when they re furb/resale. OKW may offer extensions since they do have the mess of some of the resort is already extended. They may also just close half of the resort if the demand is not there for cash rentals and let the last 15 years play out. BRV is interesting. Could it be basically resold into CCV points fairly easily (cheaper buy in based on short term)?
Off site VB and HHI will almost certainly be sold to some other timeshare company.

 

[DisDad-]

I actually believe DVD will sell Vero Beach and Hilton Head and extend the popular 2042 resorts at BWV, BCV, and Boulder Ridge.
Just letting these expire makes zero business sense.
As we approach the 2042 expiration dates, Disney would never be able to fetch the direct asking prices they have listed now, and when have we ever heard of Disney reducing prices on anything.
Also, Disney would probably go a decade or more of making next to zero on these resorts as buyers would be hesitant to pay their sky high asking prices absent of any extension.
What happened in 2007 at OKW was poor execution that won’t be repeated (I’m sure). The extension was offered way too early and those buyers were not likely to extend given the age of their ownership and the remaining years left at that time until 2042. (37 years from that date)
Fast forward to today, I’m willing to bet that a much larger percentage of owners would extend their contracts to maintain their value and extend their ownership. And the extended timeframe would also benefit Disneys bottom line. Why wait 10-15 years to make a profit when you can make money now by offering extensions at say $50, $60, $70, or even $100 per point in a few years.
Likely that a large percentage of owners at BCV, BWV, or BRV open their wallets right there and then.
That’s profitability that hits the bottom line of their parks and recreation income at the time those extensions are paid for.
Helps with the stock price.
And we know how much Bob Chapeck likes his money.

 

[sethschroeder]

There won't be any extensions but they will likely presell to current owners and market it as an extension.

Discounts/presales for members have always included resale but that could always change in 20-30 years.