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?

[_auroraborealis_]

Just letting these expire makes zero business sense.

It actually makes a lot of business sense. The lesson of OKW is they cannot extend the ground lease selectively. It extends for every owner. It wasn't a matter of offering too soon. It was a matter of legally screwing up.

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

This is what is likely to happen, and makes business sense.

• doesn't have the ground lease problem. Every contract will expire on Januuary 31, and every contract on February 1 will be new and tied to a new ground lease.
• They can modify the points charts to reflect modern pricing.
• They can tie the contracts into circa-2042 resale restrictions and BVTC rules.

The key is that it will be all new contracts on a new ground lease. The ground lease makes just saying "Bob signed something, so his existing contract is now 2057, but Emily did not so she's out in 2042" not compliant with the way the ground lease or member contracts are written.

 

[DisDad-]

It actually makes a lot of business sense. The lesson of OKW is they cannot extend the ground lease selectively. It extends for every owner. It wasn't a matter of offering too soon. It was a matter of legally screwing up.



This is what is likely to happen, and makes business sense.

• doesn't have the ground lease problem. Every contract will expire on Januuary 31, and every contract on February 1 will be new and tied to a new ground lease.
• They can modify the points charts to reflect modern pricing.
• They can tie the contracts into circa-2042 resale restrictions and BVTC rules.

The key is that it will be all new contracts on a new ground lease. The ground lease makes just saying "Bob signed something, so his existing contract is now 2057, but Emily did not so she's out in 2042" not compliant with the way the ground lease or member contracts are written.

I think you and I are saying the same thing just in a different manner. If DVD were to renew the ground lease for say another 40 years and offer existing owners presale option, that is basically offering an extension, not of the same contract, but a new one based on future restructured points charts.
Most likely resulting in an addendum to the existing owners contracts. And those that choose not to purchase the presale offer would expire in 2042 and the new points offered to new owners.
It’s what’s going to happen to OKW too.
To just let it expire and become part of the hotel side doesn’t make sense for Disney. They’d be forfeiting years of profitability on popular resorts like the BCV, BWV, and BRV and I just can’t see that happening

 

[_auroraborealis_]

If DVD were to renew the ground lease for say another 40 years and offer existing owner presale option, that is basically offering an extension, not of the same contract, but a new one based on future restructured points charts.

Legally, it would be a brand new ground lease. Old lease would cease to exist 1/31/2042. So it's really in the legality of the term "extension." The old lease would cease to exist, as would all old ownership contracts.

No addendums to existing ownership contracts, because the land lease they are tied to would not exist.

 

[Sandisw]

Legally, it would be a brand new ground lease. Old lease would cease to exist 1/31/2042. So it's really in the legality of the term "extension." The old lease would cease to exist, as would all old ownership contracts.

No addendums to existing ownership contracts, because the land lease they are tied to would not exist.

I think that is the important piece. The word "extension" is what happened to OKW...no new contract, but rather an update in terms. Nothing changed except that. With the other 2042 resorts, it will be a new contract, new terms, etc. No matter what they do, I do not think current owners will have a leg up over any other DVC member who wants in.

 

[_auroraborealis_]

I think that is the important piece. The word "extension" is what happened to OKW...no new contract, but rather an update in terms. Nothing changed except that. With the other 2042 resorts, it will be a new contract, new terms, etc. No matter what they do, I do not think current owners will have a leg up over any other DVC member who wants in.

Maybe a mild discount or waived closing fees. Since they will be new contracts they will have to close.

 

[DebbieB]

They will want to inflate those point charts.

 

[Lorana]

They will want to inflate those point charts.

This. I imagine it will make my RIV point chart look like BWV does to RIV now. ;-)

 

[_auroraborealis_]

They will want to inflate those point charts.

Which is another reason for new contracts. They cannot add points without a new inception.

 

[davidl81]

They will make far more money in 2042 with a refrub and resale of BWV and BCV (with of course adjusted point charts) then they could even come close to by offering an extension. It’s a very simple decision for Disney honestly.

 

[Chuck S]

I doubt we'll see any more resorts actually extended. And I would expect Vero, and maybe HH to be sold off when the contracts expire. Onsite resorts, I would expect to be closed, inspected for safety, fully upgraded to latest technology and refurbished thoroughly, then resold as new contracts, with a resort name change to avoid confusion. That is assuming timeshares are still a popular option in the future.

 

[CarolynFH]

That is assuming timeshares are still a popular option in the future.

Hear, hear.

 

[Brian Noble]

There are some rumblings that Wyndham is considering a subscription-based model for their timeshare product, based on something similar from the Travel & Leisure brand they acquired a little while ago.

 

[Arthur2990]

I would assume so as DVC would only do it in order to make as much money as possible. Our status wouldn't change from resale to direct most likely just longer contract. That being said we are still 20 yeas away and what happens is going to depend on a lot of factors with all of the 2042 resorts.