Question about expiration date

[cfabar1]

Hello, my understanding with DVC unlike MRVC or HRC is that the stays expire x number of years after the building was initially built. My question is, what happens to those properties at that time? Will Disney sell them again or will they close? Is there a way to extend the contract? Do we have any idea yet?

 

[Janann]

The life of a DVC location is 50 years. The oldest DVC, Old Key West, has already had an extension offer for a fee. There are two sets of expiration dates currently on the market for that resort.

I think it is highly unlikely that Disney will completely shut down and liquidate the time shares at expiration. I would expect that extensions will be offered, or the unit will be re-sold.

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[Dean]

Hello, my understanding with DVC unlike MRVC or HRC is that the stays expire x number of years after the building was initially built. My question is, what happens to those properties at that time? Will Disney sell them again or will they close? Is there a way to extend the contract? Do we have any idea yet?

The original resorts all expired in 2042. For OKW that was 50 years but was less for the rest. Starting with SSR each resort got a new 50 years. Legally the go away at the end of the RTU and no one knows what they will do. At one time they offered an extension for OKW and did it poorly thus only about 1/3 of the members at the time took advantage, all new sales at OKW are for the extended time so by the end I'd estimate roughly half the points will be owned by DVD which is a scary situation IMO. Since the OKW extension failed miserably, I doubt we'll see a true extension and if we do I think we can assume 3 things. One is that it'll be fairly late in the course, that it'll be done quite differently than was OKW and that the price will be a discounted full price rate. Ultimately if they offer an extension I doubt it'll be cheap and may be quite a bit more expensive than just letting it expire and buying back in resale. They could just resell and they could do different resorts differently, as a minimum I think you can expect HHI & VB to exit the system and be sold off.

 

[TheHolleys87]

I agree with Dean, no one here knows what they’ll do, and there are several options. All I know is that our BWV contract, bought in 1997, says our ownership expires January 31, 2042, and we hope to be around to find out the answers to those questions.

 

[cfabar1]

Sad to hear that HHI and VB will be leaving in 2042, but I suppose that is a long ways away. My bigger concern is, as these properties exit, or near exit, I would imagine Disney will start deferring maintenance in the 5-10 years leading up to it.

 

[TheHolleys87]

Sad to hear that HHI and VB will be leaving in 2042, but I suppose that is a long ways away. My bigger concern is, as these properties exit, or near exit, I would imagine Disney will start deferring maintenance in the 5-10 years leading up to it.

OTOH, they may want to keep things well spiffed up on the owners’ dimes, so that after expiration they can rent some villas for cash while they renovate and remodel the rest, to resell for many more dollars and with brand new, much higher points charts.

 

[Dean]

Sad to hear that HHI and VB will be leaving in 2042, but I suppose that is a long ways away. My bigger concern is, as these properties exit, or near exit, I would imagine Disney will start deferring maintenance in the 5-10 years leading up to it.

It's my prediction that they will be leaving but nothing more or less. I think it's likely but who knows. As for fees, the members have to pay for the maintenance through the end so while I think there will be some adjustments late likely only a year or 2 rather than 5-10 years. The other issue is that there simply are not enough points for every member to use every point the last couple of years so it will be interesting how they decide to ration the points late in the RTU.