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Any advantage to coverting to fee simple? [MERGED]

MNMary

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I own at Cliffs Club and received a letter offering the chance to covert from owning CMG stock(leasing) to a fee simple deed. My ownership would expire in 2042 with the stock, but would be forever with the deed. They are offering a subsidized rate of $96 compared to the usual $226. My husband-a bankruptcy lawyer is dubious. What do you think?
 

DeniseM

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This resort is being sold for $1 on ebay. I'd let it expire....
 

jwcoleman

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We are Cliffs owners. The original Condominium Conveyance Document leased the land. That lease ends 12/31/2045 (#3 of my deed). By converting to fee simple your interest lasts forever (if it is fee simple or not, it will be in Exhibit A of your deed). We purchased our unit from my father-in-law and it was already converted to fee simple. I believe it is a good idea to convert. We just spent a week there, and generally feel the resort is run well. If you have questions, I'm sure the management will answer them, or write a letter to the board.
 

DonM

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Lets examine this- (you understand now that I have nothing better to do)

You're considering paying about $100 today to in effect extend your current lease (which expires in over 30 years) to a deeded ownership- all for a deeded property that is currently selling right now for $1 ?

Why would you consider paying $100 today to extend a lease and wait 30 years to realize the benefit of this payment vs someone who doesn't even own a current lease who could pay only $1 to get today what you will wait 30years for?

I was going to ask how old you would be in 30 years, but that really is not the issue- or whether or not the resort will still be there!
 

MNMary

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We enjoy going to the cliffs, I'm hoping that its value will increase eventually-it looks like all Hawaiian timeshare are selling for cheap. We plan on using it at least 15 more years.
 

DonM

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We enjoy going to the cliffs, I'm hoping that its value will increase eventually-it looks like all Hawaiian timeshare are selling for cheap. We plan on using it at least 15 more years.


You can still enjoy it till 2043 (34 years) and not have to pay $100 to convert it to fee simple.
 

gbraslow

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switch to fee simple

So far, with the exception of one reply, all of the replies suggested that the current owners think only of themselves. Personally I would spend the money to convert. Then I have a property that belongs to me in perpetuity and when it comes time for me to leave this world I can leave it to a family member and let them decide if they choose to keep it or sell it. By that time the situation at The Cliffs might be resolved and the property will have some value. Afterall, does a new buyer want to buy a fee simple property and own it forever or lease hold and, as in this case, only have it for another 34 years? Duh! Remember too that property values will escalate in the future and the value of property in Princeville along with it. This financial situation that we are experiencing will not last forever. :cheer:
 

DonM

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So far, with the exception of one reply, all of the replies suggested that the current owners think only of themselves. Personally I would spend the money to convert. Then I have a property that belongs to me in perpetuity and when it comes time for me to leave this world I can leave it to a family member and let them decide if they choose to keep it or sell it. By that time the situation at The Cliffs might be resolved and the property will have some value. Afterall, does a new buyer want to buy a fee simple property and own it forever or lease hold and, as in this case, only have it for another 34 years? Duh! Remember too that property values will escalate in the future and the value of property in Princeville along with it. This financial situation that we are experiencing will not last forever. :cheer:

gbraslow:

This entire isssue involves a relatively small amount of money, so whatever the OP decides will not be life changing. However the OP did initiate this issue, so I will respond once again.

Clearly, I was suggesting that the OP think of herself. How could I presume otherwise? I don't know if she wants to leave it to someone, and if she wanted to leave it to someone, would that someone want to own it?

Additionally, you go on about the value of the property, and the financial situation improving etc. My response has no bearing on what may occur in the future (I'm not clairvoyant) nor do I have an opinion on the Cliffs- (I assume the OP likes it there or she would not be posting her question.) My answer is based on the OP's options which are either to pay $100 to change her leasehold expiring in 34 years to a deeded ownership or not. One add'l bit of information was provided by another responder who stated that the deeded Cliffs are selling for $1 on Ebay.

My opinion remains the same- but as I said it's not alot on money- maybe I should suggest the OP think of her heirs and invest that $100 today for them and in 34 years they'll have over $500 at 5% componded interest. :cheer:
 

kaylasmom97

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Leasehold vs landowners

Hi all,
We own at Cliffs Club and we just received a letter stating that we have to purchase the underlying land of our timeshare. They want us to have a fee simple deed rather than owning a share of stock . the cost is $96 to convert but I was wondering if anyone has done this. The letter states that it is easier to sell the unit or transfer it for estate purposes. Any help or hints on which is better would be greatly appreciated.
Thanks
 

FlyerBobcat

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Hi all,
We own at Cliffs Club and we just received a letter stating that we have to purchase the underlying land of our timeshare. They want us to have a fee simple deed rather than owning a share of stock . the cost is $96 to convert but I was wondering if anyone has done this. The letter states that it is easier to sell the unit or transfer it for estate purposes. Any help or hints on which is better would be greatly appreciated.
Thanks

See this recent thread for some information...

http://www.tugbbs.com/forums/showthread.php?t=88885
 

Kauai Kid

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Just a note to help confuse the issue: There was not a single Holiday Light on at the Cliffs this December. Don't know if that was for economic reasons, religious reasons, or just why. Strange.

Looked like Ebenezer Scrooge was the majority shareholder.

Sterling
 
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