2042 Deed Expiration

bgdis

Earning My Ears
Joined
Sep 24, 2019
Hello Everyone,

I’m a longtime Disney vacationer, and I’ve finally decided to take the step to buy into DVC.

I’m very new to all of this, and it’s amazing how much there is to know. In shopping around for the right resale contract, I’ve learned that members at Old Key West were offered an option to extend their contract.

As I said, I’m new, so I apologize if this has already been discussed elsewhere, but I want to ask: is there any speculation/information about whether Disney will be offering such an extension for other “older” DVC resorts ( Beach Club, Boardwalk, etc.)?
 
With every passing day, extensions seem more and more unlikely. The OKW extension was more than 10 years ago. At this point, Disney has far more money to make by taking-back ownership in 2042 and selling entirely new 50 year contracts.
 
Hello Everyone,

I’m a longtime Disney vacationer, and I’ve finally decided to take the step to buy into DVC.

I’m very new to all of this, and it’s amazing how much there is to know. In shopping around for the right resale contract, I’ve learned that members at Old Key West were offered an option to extend their contract.

As I said, I’m new, so I apologize if this has already been discussed elsewhere, but I want to ask: is there any speculation/information about whether Disney will be offering such an extension for other “older” DVC resorts ( Beach Club, Boardwalk, etc.)?
Agree with tjkraz. Disney literally has no incentive to extend the contracts, especially since there isn't a way to do so equitably--when they attempted to "force" OKW owners to do so years ago, it was met with a great deal of rancor and unrest. They won't want to go down that path again.

That being said, your unasked inquiry appears to be "do you think it's wise to buy a resale at a resort whose contract expires in 2042?" To that I pose the following:
1. How old are you and your kids? In other words, in 22 years, will you and they (most importantly you) still be interested in taking Disney vacations?
2. Will you be ready and, to the best of your knowledge, be able continue to afford Disney as they continue to far outstrip the rate of inflation? (Okay, okay, this one is a bit pejorative.)
3. Are you prepared to pay premium prices for a direct sale at a resort whose contracts expire much further in the future?
4. If the answer to #3 is no, are you prepared to pay a higher price point for newer resorts via resale? (e.g., VWL--now called BRV--expires in 2042 and you can find contracts in the $100 per point range; BLT expires years later but contracts there will start significantly higher, $125 and up.)

If you're wanting to put your toe into the DVC pool, I would personally go with a resale contract at the resort I loved the most (and you really need to stay or at least visit them to be sure) regardless of contract length. If you wind up loving DVC after a few years, and you decide to stay with them, you can always sell your first one and buy a newer one. Now, if someone were to ask me the all-encompassing question--"Is DVC a worthwhile purchase?"--I might have to demur. ;)
 
Not only do Disney not have incentive to extend any contracts save possibly VWL, but they have multiple reasons (incentives, even) NOT to extend them.
 


Legally DVC extended every OKW contract and then asked everyone that didn’t pay to sign away the extension...with different states and countries it’s a messy and not cheap process...all that for $15 (and now $25) a point with the same point charts.

Now, DVC probably has enough locations in the pipeline so they can just wait for 2042, do a renovation and then sell new contracts for $200+/point with higher point charts and make way more $.
 
Curious? What reasons can you think of for "no extensions"?

1. Legally, one of the reasons OKW was such a hot mess was because in extending the land lease to 2057 they effectively extended every existing contract. None of the other 2042 resorts was set up in such a way that they would be any different. Which leads to various forms of mayhem in terms of quit claims again, only with less time to limit possible drama. (Every OKW 2042 that is resold is being made to sign quit claims as part of either ROFR or closing. This is not coincidence.)

2. Extension would maintain same point charts and terms of membership in BVT. In other words, BWV Standard would still be ridiculous versus the points being required at Riviera, presumably Reflections, and anything after that. And the resorts would still be accessible to those who buy resale at places like Saratoga, BLT and AKV between now and 2042, instead of starting to turn some screws on resale.

Now, for those who term it "extension" but really mean "the resort will RTU in 2042 but Disney will immediately turn around and sell 10 year deeds as a new condo association," I don't like the use of "extension" for that. Because that's a new condo association, and not "I keep my 230 BWV points and BWV Standard is still ridiculous," which is typically what "extension" is taken to mean. OKW's extension maintains all point charts - and, perhaps critically, it was originally offered before new resort point charts started on the escalation curve (VGF, Poly, Riviera).
 


So should someone sell before their deed expiration? If is yes, when do you wise ones suggest it is done, meaning how far in advance of the expiration? :)
Serious question. we are in our mid 50's and kids are just about to get married. We travel other places than just WDW but visit at least once a year. We bought into AKL in August 2012, directly through DVC.
 
So should someone sell before their deed expiration? If is yes, when do you wise ones suggest it is done, meaning how far in advance of the expiration? :)
Serious question. we are in our mid 50's and kids are just about to get married. We travel other places than just WDW but visit at least once a year. We bought into AKL in August 2012, directly through DVC.

If you don’t plan to use your DVC points anymore, sell. If you want to be sure to make a profit when you sell, sell now.

If you plan to continue using your points as long as you possibly can, don’t sell. Even if the resale value drops during the last few years, the points should still have rental value - if you can’t use them.

We could make a fair profit by selling our BWV now, but we have plans to use the points, and we figure we’ve gotten so much value out of it already that we don’t care if we make money or not if we ever do have to sell.

We bought DVC to stay in DVC resorts. Making a profit when selling wasn’t even in the far back of our minds.
 
I am in my mid 60's and have owned for over 10 years. You would think that after all that time I would be in same situation as Happy99, you would be wrong. Funny how your kids end up getting married and having kids of their own--my wife and I actually get more enjoyment now taking our grandkids than when we were taking our kids. As for extending, do not think so. I believe when the contracts expire they will either do a complete tear down and rebuild or a total interior gut job and refurb--some of the original buildings are quite frankly not in the best shape. As mentioned above, the other issue is the low point value on the older resorts. I am sure Disney would prefer to have the point charts increased to be in line with the newer point charts and can only do so by Selling the older resorts as a new resort.
 
If either of us is still around in 2042, he/she will be 95+ years old. Even our heirs will be 71 and 66. If the heirs don’t want to keep paying the annual maintenance fees, the BWV contract will have been sold before then, although one of the heirs owns twice as many points as we have.
 

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