Why is there a expiration date per resort for DVC owners?

[DisneyBliss7]

We are planning on purchasing a DVC resale this year. My husband's main concern is the expiration date. He doesn't like the fact we cant pass it down to our children/grandchildren in the future. Does anyone know the reason for the expiration? Is there a way to keep it even at a lower cost?

 

[erionm]

The expiration date of each resort is the date that the ground lease between DVD (the developer) and TWDC (land owner) expires. If the ground lease is not renewed, the property will be removed from DVC and your ownership interest goes away. If the ground lease is extended, you will have the option to purchase the extension.

NOTE: They offered an extension at OKW which went over like a lead balloon.

 

[CraigInPA]

All timeshares have an expiration date, generally about 50 years. The buildings won't last forever.

When you buy a DVC share, you are purchasing the right to use your fractional ownership of the building, grounds, etc... If you choose a newer resort, such as CCV, you'll get close to 50 years of use out of it. If you buy an older resort, such as BRV, you'll get the remainder of the time remaining. BRV expires in 2042, so you'd get 24 years of use.

 

[Marionnette]

We are planning on purchasing a DVC resale this year. My husband's main concern is the expiration date. He doesn't like the fact we cant pass it down to our children/grandchildren in the future. Does anyone know the reason for the expiration? Is there a way to keep it even at a lower cost?

Having an expiration date allows Disney to take back the ownership interest at the end of the contract. At that point, DVC can do what they want with the resort...level it or rehab it entirely, reallocate the points...and resell it to an entirely new generation of Disney-loving people.

In 2007, DVC experimented by offering OKW owners the opportunity to extend their contracts another 15 years at the cost of $15-$25 per point (all or nothing, you could not extend part of the contract). Not every owner took advantage of the offer and now DVC is faced with a resort that will be partially owned by members and partially owned by DVD when the original expiration date rolls around in 2042. Any OKW contracts purchased directly from DVC from now on will have a 2057 expiration date.

No one knows what DVD will do with contracts that will be expiring in 2042. Current thoughts are that they will simply expire with no offer to extend the contracts.

 

[disneynutz]

As posted it gives Disney a way out of the deal. As far as passing it on, who knows what DVC/Disney will be like in the future and what condition the resorts will be in and who is to say that your children will even want to do Disney.

We bought the resorts that we love and don't really care when they expire.

Bill

 

[BillPA]

It also give YOU a way out. You will not need to cover the costs forever. Some find this a negative, some find it a plus knowing their family or estate will not be stuck forever paying dues.

 

[DisneyBliss7]

Thank you for all the info!! We are planning on buying at AKV. That is are absolute favorite over the years!

 

[crisi]

Remember that your kids may not want it in the future. You can pass down the remaining years if you were to pass before the contract expires - but you have a bunch of kids - some of them might want the contract, others might want to sell and pocket the money. Some may want it, but be unable to afford the dues. Some may take advantage of their siblings - using more than their share of points. People who do intend to pass a contract down to their children (usually people who are older buying a newer resort) often buy several contracts to be able to will them individually.

I'm someone who looks at my kids not likely to get stuck with my timeshare being a feature, not a bug. I have a son who wouldn't want it and a daughter who may not be able to afford it even if she wants it.

 

[_auroraborealis_]

Also, a contract is not divisible. So if you have 3 kids and 100 points, you cannot split it to 33 points each, and they will all have to be on the trust or deed and figure out among themselves how to share the costs and use the points.

 

[bwvBound]

All timeshares have an expiration date, generally about 50 years. The buildings won't last forever.

Many timeshare (outside DVC) are sold in perpetuity. They want you on the hook for special assessments when major maintenance is required. Hopefully the governing docs on these properties allow for 'special owner vote' to dissolve the timeshare at some point down the road. We had that happen on our most favorite timeshare ... the older generation opted, by super majority vote (I think?), to dissolve the timeshare and have it sold. Two of our other timeshares do not have an expiration and keep themselves quite fresh and updated.

 

[bwvBound]

We are planning on purchasing a DVC resale this year. My husband's main concern is the expiration date. He doesn't like the fact we cant pass it down to our children/grandchildren in the future. Does anyone know the reason for the expiration? Is there a way to keep it even at a lower cost?

Keep in mind that you may hand it down to your children and grand children, should you choose, before the expiration. While the original DVC properties expire in 2042 the newest ones have close to 50 years still ahead.