Why do DVC contracts expire?

[rance]

What does Disney do when the contracts expire? ie)2034.

Aren't most time shares lifelong? You would think that with all the points sold the buildings are more then paid off and maintenance fees keep them in top shape...so why expire?

Thanks

 

[Dean]

What does Disney do when the contracts expire? ie)2034.

Aren't most time shares lifelong? You would think that with all the points sold the buildings are more then paid off and maintenance fees keep them in top shape...so why expire?

Thanks

Many timeshares are fee simple and many Right to Use (RTU). Most US options other than HI are fee simple. Disney has a thing about control, they like to keep it. Dates are 2042 for VWL, BWV, OKW, VB, BCV & HH. Some OKW were extended to 2057 for a significant fee. SSR is 2054, AKV 2057 and BLT ? 2060. Not sure about HI but I'd guess 2060 as well.

 

[LauraLea]

What does Disney do when the contracts expire? ie)2034.

Aren't most time shares lifelong? You would think that with all the points sold the buildings are more then paid off and maintenance fees keep them in top shape...so why expire?

Thanks

Actually other timeshares are beyond lifelong. I for one do not want to burden my family with something they most likely do not want to have to deal with.

Laura

 

[DisneyMoM3418]

I agree with Laura. I actually like the fact that they expire.

 

[CMOORE185]

The way it was explained to me when I bought was that Disney believes the life of a Hotel is about 50 years, and because of this they would be doing us a disservice to have the membership continue on much longer than that. Now that I have had time to absorb this I am grateful this is the way it works. As others have said I do not want to burden my family with a cost they may not want.

 

[stopher1]

Many timeshares are fee simple and many Right to Use (RTU). Most US options other than HI are fee simple. Disney has a thing about control, they like to keep it. Dates are 2042 for VWL, BWV, OKW, VB, BCV & HH. Some OKW were extended to 2057 for a significant fee. SSR is 2054, AKV 2057 and BLT ? 2060. Not sure about HI but I'd guess 2060 as well.

VGC is like BLT, also 2060

Hawaii is 2062

 

[stopher1]

The way it was explained to me when I bought was that Disney believes the life of a Hotel is about 50 years, and because of this they would be doing us a disservice to have the membership continue on much longer than that.

That should be very interesting to see how that theory plays out at WDW in about 10 years. Both the Contemporary and Poly will reach that magical 50 year mark in 2021...

Out west, while not built by Disney - actually not even acquired by Disney until 1988, the original Disneyland Hotel is currently going through a complete and total renovation. All 3 towers built in the early '60's that replaced the original low-level hotel that opened in '55 are being gutted and completely redone.

 

[77kool]

That should be vert interesting to see how that theory plays out at WDW in about 10 years. Both the Contemporary and Poly will reach that magical 50 year mark in 2021...

Out west, while not built by Disney - actually not even acquired by Disney until 1988, the original Disneyland Hotel is currently going through a complete and total renovation. All 3 towers built in the early '60's that replaced the original low-level hotel that opened in '55 are being gutted and completely redone.

I am getting scared.... My two favorite resorts!

 

[TiaMaria]

It doesn't really worry me. In 47 years, my 13 and 11 year olds will be taking their grandchildren to WDW on my points. I'm sure Disney will come up with something new by then if they want it.

 

[Brian Noble]

Why? Because at some level, Disney believes it is in their best interests to set it up that way. Some do prefer having a time horizon, others do not.

 

[IssyHikerBiker]

For example, for Starwood properties, isn't it true that after 40 years, doesn't the property revert back to the association?

 

[Anthony1971]

For example, for Starwood properties, isn't it true that after 40 years, doesn't the property revert back to the association?

And there lies a problem.....
property not buildings therefore the buildings must be removed and paid for by the owners.
A timeshare of any sort can become a liability wether by contract wording or by owning for life and further where your estate may be responsable to pay dues on a run down dump that no one will stay at.

 

[DenLo]

Many timeshares are fee simple and many Right to Use (RTU). Most US options other than HI are fee simple. Disney has a thing about control, they like to keep it. Dates are 2042 for VWL, BWV, OKW, VB, BCV & HH. Some OKW were extended to 2057 for a significant fee. SSR is 2054, AKV 2057 and BLT ? 2060. Not sure about HI but I'd guess 2060 as well.

BTW, Dean, Aulani expires in 2062, after all it is opening two years after BLT opened.

 

[pmcpmc]

I for one won't be worrying .
I suppose its like a grave,its not forever and will in time be recovered

 

[Dean]

For example, for Starwood properties, isn't it true that after 40 years, doesn't the property revert back to the association?

As I noted, MOST timeshares in the US do not expire, HI can be the exception. For other countries, it varies. In Aruba and MX, almost all expire. As noted, the question is whether that's an asset or a liability and that answer will vary widely depending on the circumstances. MOST will be a liability but some won't, it all comes back to quality and location.

 

[Mtnman44]

I tend to think that because Disney knows they will be getting them back, it helps motivate to keep them in good condition, modern, and desireable. Contrast this to many other "deeded forever" timeshares that quickly become run down and sold for pennies on the dollar.

 

[TisBit]

That should be very interesting to see how that theory plays out at WDW in about 10 years. Both the Contemporary and Poly will reach that magical 50 year mark in 2021...

Out west, while not built by Disney - actually not even acquired by Disney until 1988, the original Disneyland Hotel is currently going through a complete and total renovation. All 3 towers built in the early '60's that replaced the original low-level hotel that opened in '55 are being gutted and completely redone.

Well, it is already panning out, many people are complaining about the condition of the Poly and it will probably be looking at a major rehab.

As the PP said, we were also told that the lifespan of a building is about 50 years before it will need a major remodel/rebuild and this will keep the owners from having to pay for it. While the shell of a building can last a long time, there is a point that it will need to be gutted, rewired, and just brought up to the current times.

 

[Dean]

BTW, Dean, Aulani expires in 2062, after all it is opening two years after BLT opened.

I wan't sure but wouldn't assume that every new resort will be a new 50 years, after all, all resorts from OKW to BCV were 2042 until OKW was given the right to extend.

 

[Jason@dvcstore]

I wan't sure but wouldn't assume that every new resort will be a new 50 years, after all, all resorts from OKW to BCV were 2042 until OKW was given the right to extend.

I wasn't sure either so I checked with Disney Vacation Club this morning and Aulani expires January 31st, 2062.

Jason

 

[cm8]

That should be very interesting to see how that theory plays out at WDW in about 10 years. Both the Contemporary and Poly will reach that magical 50 year mark in 2021...

Out west, while not built by Disney - actually not even acquired by Disney until 1988, the original Disneyland Hotel is currently going through a complete and total renovation. All 3 towers built in the early '60's that replaced the original low-level hotel that opened in '55 are being gutted and completely redone.

wow!!