OKW extended years option in resale purchase

[Dee77]

So we received our closing paperwork today for the resale purchase we negotiated in Dec and it turns out that we have the option to pay for the extended years. The reason given was that the sellers never sent back the document when the extension was sold. If we opt out of that then we will not be given the option again. Has that happened with any other OKW contracts sold via the resale market? TIA

 

[lovin'fl]

Not heard of that happening. How much will it cost for you to extend?

 

[nabi]

I did read that here before. The situation was a little different as the buyers had not gone through ROFR yet and wanted to know the possibility. The answer was what you are experiencing... that if the paperwork for denial had not been sent in, it can still be done. Cost, though, I did not take note of, so perhaps a search will help you find it. I don't recall the exact topic, or I'd do it myself and point you in that direction.

BTW congratulations

 

[Dean]

So we received our closing paperwork today for the resale purchase we negotiated in Dec and it turns out that we have the option to pay for the extended years. The reason given was that the sellers never sent back the document when the extension was sold. If we opt out of that then we will not be given the option again. Has that happened with any other OKW contracts sold via the resale market? TIA

I've read of it a couple of times. It's certainly not worth an extra $25 to extend it and just because they say it won't be offered again doesn't mean a lot IMO.

 

[Dee77]

Not heard of that happening. How much will it cost for you to extend?

$25 per point

I did read that here before. The situation was a little different as the buyers had not gone through ROFR yet and wanted to know the possibility. The answer was what you are experiencing... that if the paperwork for denial had not been sent in, it can still be done. Cost, though, I did not take note of, so perhaps a search will help you find it. I don't recall the exact topic, or I'd do it myself and point you in that direction.

BTW congratulations

Thanks!

I've read of it a couple of times. It's certainly not worth an extra $25 to extend it and just because they say it won't be offered again doesn't mean a lot IMO.

We realize that it could very well be offered again sometime down the road and we agree that the price is not exactly perfect but we decided to go for it since we have the funds now and we really love OKW. No regrets.

 

[Dean]

We realize that it could very well be offered again sometime down the road and we agree that the price is not exactly perfect but we decided to go for it since we have the funds now and we really love OKW. No regrets.

Your choice of course. IMO it wasn't worth the original $15 a point offer. The other issue is what happens to resort function and fees once the 2042 owners drop out, my thoughts are it's not going to be pretty.

 

[drusba]

One benefit, and I use that term very loosely, that has been mentioned for purchasing the extension option after resale is that it makes all your points purchaser from DVD points and thus allows you to use the Disney Collections that resale purchasers cannot use.

 

[Dee77]

One benefit, and I use that term very loosely, that has been mentioned for purchasing the extension option after resale is that it makes all your points purchaser from DVD points and thus allows you to use the Disney Collections that resale purchasers cannot use.

Really? I hadn't thought about that. Not that I have intentions to use any points that way. Thanks!

 

[bwvBound]

One benefit, and I use that term very loosely, that has been mentioned for purchasing the extension option after resale is that it makes all your points purchaser from DVD points and thus allows you to use the Disney Collections that resale purchasers cannot use.

Interesting -- I had been wondering about that possible side-effect. Thanks for confirming!

 

[OKW Lover]

Your choice of course. IMO it wasn't worth the original $15 a point offer. The other issue is what happens to resort function and fees once the 2042 owners drop out, my thoughts are it's not going to be pretty.

Wouldn't resort fees be apportioned according to the proportion of owned units vs those that revert to Disney?

 

[Dean]

Wouldn't resort fees be apportioned according to the proportion of owned units vs those that revert to Disney?

Yes but possibly not how you're thinking. Based on the info we have, once 31 Jan, 2042 hits, the resort will be somewhere in the area of 1/3 still having owners and 2/3 reverting back to Disney. Then you start to look at their options and costs.

Maybe Disney will sell those points or give them away in some manner that the entire resort stays open but I think that unlikely. If not, then they have the issue of how to downsize the resort. If this happens, at best the resort will close 2 pools and block off 2/3 of the buildings. However, assuming that most units (generally a building for OKW I believe) still has owners, they might have to keep those units open or figure out a way to change the deed to another unit for those 2057 owners. OKW at 1/3 to 1/2 the size is significantly more expensive to operate than at it's current capacity. Think VB and the changes in the fees (subsidized vs not) with the smaller configuration and that was only around a 1/3 reduction compared to original plans and without the onsite issues and transportation components. My best guess, fees 1/3 higher than before plus a loss of the boats and the 2 of the 3 "quiet" pools including the larger one.

 

[Sur]

^^^^That would really stink. I'd be irritated if I had extended!

 

[Dee77]

I guess we will have to wait and see exactly what happens, it's just 28 short years to find out..

 

[Dean]

I guess we will have to wait and see exactly what happens, it's just 28 short years to find out..

Probably a little less, simply more risk than I'd be comfortable with. It may work out, things have a habit of doing so but I'd be concerned personally. Even if the resort stays intact because of cash rentals or some type of resale, the design of the resort and buildings is likely to increase costs a fair amount over time.