thoughts about contract extension

[jade1]

Owning at BCV or BWV or VWL ending in 2042 is great IMO. Especially since new resorts keep rolling out with new 50 year contracts-you can always add on at these, or sell and add on at these. BLT wasn't even on the radar a few years ago, what's next...POLY? GF? A new adults only near EPCOT? Who knows? But these seem way more attractive instant return on investments (vacation now) than paying to extend the same number of points to use 30 years from now IMO. Unless its more or less free like Dean mentioned-forget it.

 

[NewDCLGuy]

they wanted to charge $25 per pt for points that could not be used for 35 years.

They *did* charge $25/point and forced every owner to buy. Then they offered a $10/point discount to those that paid up quickly, and offered to buy the extended years back from those people who didn't want them. It was a very messy legal structure, and one Jim Lewis has promised to not use again.

The extension is essentially a timeshare in which you pay now, but can't take advantage of for 35 years. Time share laws make that difficult, so Disney created a crafty "solution" with at least as many problems as it solved.

The biggest issue is probably the reserve fund, and to what extent non-extenders will be charged for post 2042 maintenance. There is an online poster who claims Disney was brought before the Florida timeshare commission and promised to subsidize fees so the non-extenders don't get hurt. But we've seen nothing in writing, nor has Disney ever commented on how the reserve fund will me maintained.

Given all the problems, I highly dowt we will see an extension similar to what was done for OKW.

 

[5forDiz]

They *did* charge $25/point and forced every owner to buy. Then they offered a $10/point discount to those that paid up quickly, and offered to buy the extended years back from those people who didn't want them. It was a very messy legal structure, and one Jim Lewis has promised to not use again.

The extension is essentially a timeshare in which you pay now, but can't take advantage of for 35 years. Time share laws make that difficult, so Disney created a crafty "solution" with at least as many problems as it solved.

The biggest issue is probably the reserve fund, and to what extent non-extenders will be charged for post 2042 maintenance. There is an online poster who claims Disney was brought before the Florida timeshare commission and promised to subsidize fees so the non-extenders don't get hurt. But we've seen nothing in writing, nor has Disney ever commented on how the reserve fund will me maintained.

Given all the problems, I highly dowt we will see an extension similar to what was done for OKW.

It was offered at $15 initially, raised to $20 approximately 6-8 months later and is currently at $25 and OKW owners were not forced to do it; owners bought that extention if they wanted it, if not they signed the paperwork to decline the additional 15 years.

 

[awilliams4]

If they were planning to offer an extension on VWL, BCV or BWV recently, the economy probably made them think to wait a bit. I own at BCV and will probably pay for an extension if offered.

 

[poggs]

I am a UK based OKW owner. As I will be 72 in 2042, I did not wish the extension.

Unfortunately US to UK law in relation to timeshare purchases caused a fair bit of 'fun' for me. The notary public requirement for witnessing the process is not easy over here. Notary publics are very rare and those who are tend to be full on lawyers. So I had to make an appointment with a lawyer who witnessed the signing of my declining the contract, after of course he had perused the contract and given it his seal of approval. The cost for this was £300 (at that time this was just over $600). I sent this bill to disney who paid it.

I cant have been the only Uk owner who had this problem and it must have cost DVD a pretty penny. God only knows what problems the laws in other countries threw up.

So before doing any other extensions, DVD will have to come up with a method that wont cost them and us, so much money, time and hassle.

 

[Dean]

Unless its more or less free like Dean mentioned-forget it.

Even if free, there's still a significant long term commitment.

 

[NewDCLGuy]

It was offered at $15 initially, raised to $20 approximately 6-8 months later and is currently at $25 and OKW owners were not forced to do it; owners bought that extention if they wanted it, if not they signed the paperwork to decline the additional 15 years.

That may be the way Disney presented it. But what happened legally is that every member was assessed $25/point to extend the lease. Those that paid early were given $10, reducing their net cash outlay to $15. Those those didn't want the extension signed the extra years back over to Disney to cover the $25/point they owed.

This unusual legal structure will not be repeated.

 

[5forDiz]

That may be the way Disney presented it. But what happened legally is that every member was assessed $25/point to extend the lease. Those that paid early were given $10, reducing their net cash outlay to $15. Those those didn't want the extension signed the extra years back over to Disney to cover the $25/point they owed.

This unusual legal structure will not be repeated.

afaik, assessment of $25 per point was not enacted ( unless I totally missed happening ); but I agree with you that DVC can say and ~try~ to do this, to what success is anyone's guess at this point - many members have posted on various threads here that this type of assessment wouldn't be possible given OKW's POS.

Guess we'll have to stay tuned. You're right, unusual for sure as well as messy.

 

[DenLo]

I had a thought... if you have kids you might want a longer contract so they get to enjoy it. We have 2 kids and I want them each to have a longer contract to inherit some day!

That's quite understandable and a very nice gift for your children but for some that own at OKW the kids have already lost interest in going to Disney and it's unknown whether the adult grandchildren would interested. It's a nice gift, but only if the recipient can afford the MFs. I was really impressed when I saw a post that a woman wanted to set up a trust fund for the heirs so the maintenance fees would continued to paid. Now that's a fabulous gift and something we could never do for our estate.