What Happens When Contracts Expire?

[Carolynleanne]

Hi all,

We're in the 'hurry up and wait' process of buying into DVC. We've decided to buy, but are waiting for the right contract the all the cash so we can buy resale outright.

Here's my question... what's going to happen when the contracts expire? My parents own a timeshare without an expiration date. Disney has one. So when all these contracts expire in the next 30-40 years, does everybody start from scratch? As in, NO one will own? That just boggles my mind a bit. Do we have ANY idea of what will happen?

Thanks

 

[BillPA]

it's over, no more timeshare, no more financial commitment. You will finally be free to go where you please.

 

[Carolynleanne]

it's over, no more timeshare, no more financial commitment. You will finally be free to go where you please.

We don't own yet, so we're still free Haha!

 

[CraigInPA]

It is generally believed that the land (and improvements) revert to the property owner (Disney), who will in turn re-lease them to Disney Vacation Development (DVD). DVD will then re-develop the properties and sell them as new timeshares with 50 year expiration dates.

 

[stuartsong]

I will be too old to worry about the expiration dates.

 

[DougEMG]

I'll expire before my post of my contracts do. So not a problem, although I wouldn't mind being around to have that problem.

 

[jarestel]

Actually, the first wave of WDW timeshare contract expirations (OKW-non extended, BWV, BRV, and BCV) will begin in a mere 23 years - January of 2042.

 

[chalee94]

My parents own a timeshare without an expiration date. Disney has one. So when all these contracts expire in the next 30-40 years, does everybody start from scratch? As in, NO one will own? That just boggles my mind a bit. Do we have ANY idea of what will happen?

Does a car lease boggle your mind?

With DVC, you are just paying for the use of the property.

I also have a timeshare without an expiration date. I bought it for $1 (technically less as annual dues were also partially paid).

If I had to sell my DVC contract , I could currently do so at a profit. If I had to sell the other timeshare, I'd be lucky not to have to pay someone to take it. Have you considered the downsides of owning a 60 year old resort building and how unlikely it will be that many of them will still be desirable for stays compared to the shiny new resorts down the road?

There are tradeoffs - you just have to be aware of them.

 

[The Prophet]

We know what will happen at the end.
However, what will happen in the months leading up to 1/31/2042 is unknown

For example will folks who own at Copper Creek be permitted to book at Beach Club/Boardwalk 7 months prior to this date, or will there be restrictions?
What about Old Key West? They need to keep all (or part) of the resort operational past 2042.

Stay tuned ....

 

[skseif514]

I would like to think they'll offer people the choice to extend their contracts. I bought my OKW directly from Disney and the person who had it before me chose to extend the contract, so mine will expire in 38 years. Had that not been the case, I would've bought into CCV for the longer contract date.

 

[kniquy]

Do we have ANY idea of what will happen?

Your contract will end at that point and you will own nothing.

What we don't know is - if DVD will offer extensions on the contracts, if they will just end all contracts, will they refurbish and then sell as new contracts. They already tried selling extensions on OKW but from what I have read it was not as successful as they would have liked it to be - now there is a pool of contracts that will expire in 2042 and some in 2057 -- that will likely be a bit of a mess.

 

[BillPA]

DVC will be stuck with thousands of resort units with no one paying for them. The poor members that have longer term contracts will be forced to cover much more per point for 'overhead', so expect the dues to have 15% + annual increases. JMHO
So pick your home resort wisely!!!

 

[Sleepy425]

I would like to think they'll offer people the choice to extend their contracts. I bought my OKW directly from Disney and the person who had it before me chose to extend the contract, so mine will expire in 38 years. Had that not been the case, I would've bought into CCV for the longer contract date.

After they offered the extension, I thought all direct purchases became 2057. I know that is now the case. You can’t buy 2042 direct from Disney, they only sell 2057.

 

[MrPTato]

Hi all,

We're in the 'hurry up and wait' process of buying into DVC. We've decided to buy, but are waiting for the right contract the all the cash so we can buy resale outright.

Here's my question... what's going to happen when the contracts expire? My parents own a timeshare without an expiration date. Disney has one. So when all these contracts expire in the next 30-40 years, does everybody start from scratch? As in, NO one will own? That just boggles my mind a bit. Do we have ANY idea of what will happen?

Thanks

Off to Universal!

 

[skseif514]

After they offered the extension, I thought all direct purchases became 2057. I know that is now the case. You can’t buy 2042 direct from Disney, they only sell 2057.

That’s just how my Vacation Guide explained it to me. I was between CCV, OKW, and SSR and he told me that my contract had been an extended one that someone had sold back to Disney.

 

[KAT4DISNEY]

That’s just how my Vacation Guide explained it to me. I was between CCV, OKW, and SSR and he told me that my contract had been an extended one that someone had sold back to Disney.

Yeah, that's not really it. Or rather that's not it at all.

What happened is that Disney/DVC extended all of OKW. They then had existing owners either pay for it or sign a quit claim deed that will turn over their ownership to DVC in 2042 who then will have it from 2042-2057.

So, any points they get back now for whatever reason are already extended whether the owner paid for the extension or not.

 

[Dean]

Hi all,

We're in the 'hurry up and wait' process of buying into DVC. We've decided to buy, but are waiting for the right contract the all the cash so we can buy resale outright.

Here's my question... what's going to happen when the contracts expire? My parents own a timeshare without an expiration date. Disney has one. So when all these contracts expire in the next 30-40 years, does everybody start from scratch? As in, NO one will own? That just boggles my mind a bit. Do we have ANY idea of what will happen?

Thanks

As noted, we cease to be an owner and the resort goes out of the club. My guess is the last 2-3 years they will stop banking and possibly borrowing. The last year and last UY (2041) is going to be the issue as there simply are not enough rooms at those resorts to handle all of the points potentially available so they will have to have some type of option to limit who gets in, hopefully with prorated dues.

 

[gharter]

Your contract will end at that point and you will own nothing.

What we don't know is - if DVD will offer extensions on the contracts, if they will just end all contracts, will they refurbish and then sell as new contracts. They already tried selling extensions on OKW but from what I have read it was not as successful as they would have liked it to be - now there is a pool of contracts that will expire in 2042 and some in 2057 -- that will likely be a bit of a mess.

This would be my guess. They will either offer extensions or remodel and resell if the units are in any shape to be able to do that by that time.
By the time the contract expire, there may not be as big of a DVC demand and they could go to regular inventory or demand may be higher.

 

[Deb & Bill]

Feb 1, 2042 there will be no BWV, no BRV, no SSR, no BCV, no VB, no HHI, some OKW. You'll be limited to booking those more point expensive Polynesian, GFV, GCV, AKV, Aulani, BLT. And any new ones.

 

[Dean]

Feb 1, 2042 there will be no BWV, no BRV, no SSR, no BCV, no VB, no HHI, some OKW. You'll be limited to booking those more point expensive Polynesian, GFV, GCV, AKV, Aulani, BLT. And any new ones.

The end date for Saratoga Springs is 2054. Technically all of old Key West will be in the club until 2057