What Happens When Contracts Expire?

[a742246]

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.

I am hoping Disney turns BWV and BC into an assisted living facility. I could go for that...lol

A spot for retired DVC members.

 

[_auroraborealis_]

I am hoping Disney turns BWV and BC into an assisted living facility. I could go for that...lol

A spot for retired DVC members.

no, no, that's Reflections: A Disney Rehab Center and Memory Care Residence.

 

[Dean]

There is no word from Disney on what will happen when the resorts hit their expiration dates. There are a lot of guesses...but nobody really knows.

Perhaps the Disney higher-ups may have an idea, but no info has ever been released.

We don't know what will happen but the options are fairly limited. There are basically 2 issues, extension and how to end them. If they end them, they do have the option of selling new and this could function much like an extension. Each come with a certain set of realities. If they end them without extension, they have to wind down the usage and the dues even if they resell. If they extend, they either have to extend all or have a transition plan not that dissimilar to the OKW extension. With the new resorts having a different legal setup, I tend to favor a new sale that functions much like an extension. Any ending has the reality that there are not enough villas in the resorts to handle all of the points the last 1-2 years before a given cutoff. It should be an interesting time when that comes around.

 

[4luv2cdisney]

We don't know what will happen but the options are fairly limited. There are basically 2 issues, extension and how to end them. If they end them, they do have the option of selling new and this could function much like an extension. Each come with a certain set of realities. If they end them without extension, they have to wind down the usage and the dues even if they resell. If they extend, they either have to extend all or have a transition plan not that dissimilar to the OKW extension. With the new resorts having a different legal setup, I tend to favor a new sale that functions much like an extension. Any ending has the reality that there are not enough villas in the resorts to handle all of the points the last 1-2 years before a given cutoff. It should be an interesting time when that comes around.

I personally intend to borrow out the last years as soon as possible but this is where the new resale restrictions could screw some people over. Someone who can trade into DVC2 resorts should find availability somewhere, I'd think. I definitely wouldn't want to have banked points that I need to use going into those last years .

 

[Mikey15]

Isn’t SSR 2057?

 

[KAT4DISNEY]

Isn’t SSR 2057?

SSR is 2054.

 

[Mikey15]

SSR is 2054.

Thank you. I saw a post earlier that it was 2037 so would be done before the others and I thought that looked wrong.

 

[KAT4DISNEY]

Thank you. I saw a post earlier that it was 2037 so would be done before the others and I thought that looked wrong.

Yes, that would have been before any others! Lol

 

[Dean]

I personally intend to borrow out the last years as soon as possible but this is where the new resale restrictions could screw some people over. Someone who can trade into DVC2 resorts should find availability somewhere, I'd think. I definitely wouldn't want to have banked points that I need to use going into those last years .

Assuming the resort terms, even if it's resold to the same owners, I think it's a certainty that they'll limit banking the last couple of years and I give it better than 50/50 they limit borrowing as well at least from the 2041 UY (which will be the last UY of points). So likely no banking starting with the 2039 UY points and no borrowing from the 2041 UY assuming they are not extended directly. And it's possible they might start either or both even a year earlier.

 

[Frederic Civish]

The many expiring contracts will create something of a bottleneck when it comes to room availability. So, how is this going to affect the resorts that are NOT expiring? Will they limit banking or borrowing for them?

Is banking and borrowing a right specified in the contract agreement? If so, then they can't limit it. Or is it a removable 'perk.'

Other resorts that are not expiring should see absolutely no change in the 7 to 11 month window. But once they reach the 7 month window, they also will not have many options.

It might actually be an excellent time for resales, for people whose resorts are not expiring. Many people whose contract is ending will want to get something else, so they can stay in DVC. On the other hand, the fact that some contracts are ending will reinforce the ephemeral nature of the other contracts. Possibly decreasing the value of those resorts in resale.

If banking is not restricted for owners at other resorts, they might not have too much trouble trying to get through the bottleneck.

 

[Frederic Civish]

A few things to consider:

Contracts expire at Midnight on January 31st of the expiration year. This means that people with a February Use Year will get ONE LESS YEAR OF BENEFITS, compared to people with a January Use Year, since the January Use Year people will get another whole year of credits, on January 1, just 30 days before those credits expire. Makes you think that January Use Year contracts are worth a bit more than February. Other months will be in between. Use Year will have their year of points during Sept, Oct, Nov, Dec and Jan before they expire. Should be much easier to use them.

How is Disney going to collect Membership Fees during the last year of the contract? What happens when someone Borrows all the points out of their last year, and uses them in the previous year, and then refuses to pay Membership Dues for their last year. I think it is possible that Disney will require people to pay their membership fees in advance, for any points that are Borrowed out of the final year. But can they even do that? What does the DVC Contract say?

Will there be any other peculiarities that anyone can think of?

 

[Dean]

The many expiring contracts will create something of a bottleneck when it comes to room availability. So, how is this going to affect the resorts that are NOT expiring? Will they limit banking or borrowing for them?

Is banking and borrowing a right specified in the contract agreement? If so, then they can't limit it. Or is it a removable 'perk.'

Other resorts that are not expiring should see absolutely no change in the 7 to 11 month window. But once they reach the 7 month window, they also will not have many options.

It might actually be an excellent time for resales, for people whose resorts are not expiring. Many people whose contract is ending will want to get something else, so they can stay in DVC. On the other hand, the fact that some contracts are ending will reinforce the ephemeral nature of the other contracts. Possibly decreasing the value of those resorts in resale.

If banking is not restricted for owners at other resorts, they might not have too much trouble trying to get through the bottleneck.

All they have to do is change the POS which they've done related to banking at least twice. I doubt they will allow a free for all so they'll have to control the number of points since there simply are not enough rooms in the system to book using all potentially available points the last couple of years. I think it's unlikely the last UY will get full points across the board. They could do a lottery system, a "special season priority list), allow people to opt out while also opting out on the fees or a number of other variations. I think some type of reduced fees the last few years is a guarantee, the question is exactly how it will be altered and how it will be allotted ? based on points used.

 

[4luv2cdisney]

A few things to consider:

Contracts expire at Midnight on January 31st of the expiration year. This means that people with a February Use Year will get ONE LESS YEAR OF BENEFITS, compared to people with a January Use Year, since the January Use Year people will get another whole year of credits, on January 1, just 30 days before those credits expire. Makes you think that January Use Year contracts are worth a bit more than February. Other months will be in between. Use Year will have their year of points during Sept, Oct, Nov, Dec and Jan before they expire. Should be much easier to use them.

How is Disney going to collect Membership Fees during the last year of the contract? What happens when someone Borrows all the points out of their last year, and uses them in the previous year, and then refuses to pay Membership Dues for their last year. I think it is possible that Disney will require people to pay their membership fees in advance, for any points that are Borrowed out of the final year. But can they even do that? What does the DVC Contract say?

Will there be any other peculiarities that anyone can think of?

There is no Jan UY

 

[Frederic Civish]

There is no Jan UY

Okay. Then that solves THAT problem!

I didn't realize that, because it has been a while since I bought and none of my 8 contracts are January UY, but I just assumed. (I do have a February Use Year). Maybe this the the reason Disney doesn't sell any January Use Years.

 

[KAT4DISNEY]

Okay. Then that solves THAT problem!

I didn't realize that, because it has been a while since I bought and none of my 8 contracts are January UY, but I just assumed. (I do have a February Use Year). Maybe this the the reason Disney doesn't sell any January Use Years.

It's been rare but not all resorts gave points to every UY when it opened either. VGC for one did not. It may have been the only one - not positive but only June-Dec UY's got the opening year points.

 

[crvetter]

The many expiring contracts will create something of a bottleneck when it comes to room availability. So, how is this going to affect the resorts that are NOT expiring? Will they limit banking or borrowing for them?

Is banking and borrowing a right specified in the contract agreement? If so, then they can't limit it. Or is it a removable 'perk.'

Other resorts that are not expiring should see absolutely no change in the 7 to 11 month window. But once they reach the 7 month window, they also will not have many options.

It might actually be an excellent time for resales, for people whose resorts are not expiring. Many people whose contract is ending will want to get something else, so they can stay in DVC. On the other hand, the fact that some contracts are ending will reinforce the ephemeral nature of the other contracts. Possibly decreasing the value of those resorts in resale.

If banking is not restricted for owners at other resorts, they might not have too much trouble trying to get through the bottleneck.

Banking and borrowing is something that DVC can limit at anytime and at their discretion. In the very beginning my understanding is they limited to 50% of points for banking.

 

[KAT4DISNEY]

Banking and borrowing is something that DVC can limit at anytime and at their discretion. In the very beginning my understanding is they limited to 50% of points for banking.

It was staggered. Earlier in the UY you could bank 100% then it would decrease with closer dates to the end of the UY.

 

[heynowirv]

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

LOL

 

[heynowirv]

I believe $25/point with a discounted offer that eventually settled at $15.

But any extension is unlikely to be handled in the same manner and most certainly wouldn't be for those prices.

That is correct Kat.We were offered but declined.

 

[Frederic Civish]

Banking and borrowing is something that DVC can limit at anytime and at their discretion. In the very beginning my understanding is they limited to 50% of points for banking.

It was staggered. Earlier in the UY you could bank 100% then it would decrease with closer dates to the end of the UY.

So, they are probably quite likely to Limit them once we get closer to Expiration for some of the resorts.

I guess this just illustrates that Disney has an incredibly greater level of Discretionary power over our DVC 'investment' than I thought they did. They literally, with a few bad decisions, could ruin everything. And I'm afraid that if they don't respect us, then that is exactly what they will do. I have 325 points Direct, but in total I have over 1000 points. It wasn't cheap, but I felt it was definitely worth it. And I was getting ready to add another 200 points or so. But now I am much less secure in my ownership than I was. I also helped talk my Sister-in-Law and Nieces into buying a 300 point contract, just 3 months ago, at AKV. And I have been recommending it to people at work. But no more. Disney has damaged, even destroyed, my trust. In other words, I no longer trust them at all to keep our dedication and loyalty in mind when they make their decisions. And that is bad. When DVC ceases to be 'something special' then it ceases to have much value at all.