When a contract expires, what happens?

[dacky041208]

You've all been great in answering my questions so far, and I have another. We've been trying to figure out which resort to buy into, and both of us would love to be close to either MK or Epcot, so BWV, BCV, BLT, and WL all seem very interesting so far. Now all of those except BLT have contracts that end 2042. We understand the importance of having a home resort you'll be happy at, but we would rather buy into a contract for 40-50 years over those that end in 32 years. Does anyone have any idea what they'll do with those contracts when they are up? When they offered the OKW extension, how much did that cost for those that took it? Do you think they'll do the same thing for other resorts?

 

[Microsoft5]

When you become a DVC Memeber you sign a contract you say that Disney gives you 50 years worth of time. But if you buy shorter time then your time is shorter. But Disney always reserves the right to offer another Contract or end the terms. If you have anymore questions ask or call DVC. To find their number go to their website disneyvacationclub.com

 

[wdwnut]

DVC did have an offer to extend the original OKW contracts another 15 years to 2057 a few years ago. They didn't get too many takers- I don't know that the pricing was worth it. They may offer to extend BWV, BCV, and VWL as well.

 

[Sandisw]

When you become a DVC Memeber you sign a contract you say that Disney gives you 50 years worth of time. But if you buy shorter time then your time is shorter. But Disney always reserves the right to offer another Contract or end the terms. If you have anymore questions ask or call DVC. To find their number go to their website disneyvacationclub.com

I am not sure what you mean, but you do not automatically get 50 years when you purchase DVC Each resort has a set expiration date and when you buy in at that resort, regardless of when and where, your contract will expire then. So, anyone who buys in to a resort whose expiration date is 2042 is buying in for 32 years, not 50.

Right now, in 2042, your ownership at BWV, BCV, or VWL would end. At some point, Disney may decide to offer an extension to owners but there is no guarantee. If they don't, then your contract with DVC is over. I can't see them not doing something but that is JMO.

Since BLT doesn't expire until January, 2060 you are getting an additional 18 years with your purchase. Of course, you are going to pay a substaintially higher price to owner there, but if knowing you are locked in for 50 years is important, then spending the extra may be worth it.

We bought BLT because we love it there and paid more because we know we will be happy staying there year after year.

Good luck!

 

[RobDoc]

You've all been great in answering my questions so far, and I have another. We've been trying to figure out which resort to buy into, and both of us would love to be close to either MK or Epcot, so BWV, BCV, BLT, and WL all seem very interesting so far. Now all of those except BLT have contracts that end 2042. We understand the importance of having a home resort you'll be happy at, but we would rather buy into a contract for 40-50 years over those that end in 32 years. Does anyone have any idea what they'll do with those contracts when they are up? When they offered the OKW extension, how much did that cost for those that took it? Do you think they'll do the same thing for other resorts?

When the board voted to extend the OKW land lease, the price set was $25 per point. They offered an "incentive" pricing to current OKW members at $15 per point thru February, 2008 and the pricing rose to $20 per point after that date. I understand that it is now $25 per point for those still wanting to extend their OKW contracts.

There has been no suggestion at this time regarding extensions for any other resorts.

In looking at OKW resales and comparing the extended contracts available, there is not a $15 difference. If you can find an extended resale contract, the few additional $$ may well be worth it over a non-extended resale at this time. All OKW purchases thru DVC will have the 2057 expiration date (and the price will be much greater than any of the resales currently available).

 

[JoRo]

Hi

As we are trying to decide which resort (BCV, BWV, OKW Ext, SSR or VGC or wait for hawaii) since we live on west coast....

Does anyone have a gut feeling of what they might do...we really like BCV and would consider buying this resort but dont really like the 2042 end date of course I will be 73 but my dad was going on rides at Disneyland for his 80th birthday - so as long as I can afford to fly and there are motorcart thingy - well be going to disney...


Thanks!

 

[JoRo]

Oh also meant to say since BCV seem to be a popular DVC location - woudnt the sales of the extention be better???

THanks!

 

[tjkraz]

Oh also meant to say since BCV seem to be a popular DVC location - woudnt the sales of the extention be better???

Probably, but DVC stands to make a lot more money if they wait until 2042 and sell another round of 50-year contracts.

The extensions created a lot of administrative expenses for DVC and ill will by many members over the manner in which it was handled. Also the price was prohibitively high, IMO. When considering a purchase that you cannot even use for many years to come you need to take into consideration the time value of money. According to some of the financial pros here, the present value of the OKW extension at the time of its offering was about $6 per point. DVC's best price was $15. Most people who chose to extend at OKW would have been better off investing that $15 per point and then using the proceeds to buy a short-term contract somewhere when 2042 rolls around.

If you choose to buy into BCV, I would do it with the expectation that you will only get the 32 years. If you still have a desire to go to WDW after that contract has ended, consider all of your options (pay cash, buy a contract at a resort like AKV or BLT that has 15-18 years left, buy whatever new BCV contracts are offered, etc.)

 

[JoRo]

WOW your knowledge and time is very appreciated - thank you!!

You help with my plan to get my way...I mean get the best deal for my family and try for BCV. (HA)

Thanks!
Lisa

 

[rlovew]

The other unknown to think about is if they simply turn them over to the hotel division (which they could) is that you would not be able to trade into them once they expire. So if you really want to stay at these resorts they may not even be avialable after that time as it is- even if you own at another- so make sure you are happy staying where you buy as it may be impossible to get into something else once resorts strat expiring.