15 Year Extension at OKW for $25 per point

[MichelleB]

Disney is currently selling OKW for $92pp.

 

[kend58]

Disney is currently selling OKW for $92pp.

IMHO what is relevant here is how has/does the resale market value the extra years. The following analysis assumes the only factor in price differential between OKW and SSr is teh contract duration 12 year differntial (this is of course probably faulty but since many other factors related to members age, family make-up, vacation plans, location etc) however, it is the only way I can see to eliminate personnel likes and dislikes and emotion while perfroming this analysis.

The resale market is in a range from $72 to $81 for OKW

The resale market is in a range from $80 to $88for SSR

So the resale market values the extra 12 years at around $7 to 8 if all other factors in value are ignored (at least no higher than $10 dollars), DVD has only valued the 3 extra years at AKV over SSR at $2 recently in their pricing models so it seems the $25 is excessive and that even the $15 is more than the marketplace and DVD have valued extra time at so far. Seems like $10 is closer to what the resale market and DVD themselves have signaled the extra years are worth at this point.

 

[Mtnman44]

Will DVC be able to redo the point charts for OKW after 2042 or will the extention keep the current point requirements "locked in"? Anyone know?

 

[MichelleB]

Good question, Mtnman44! I had assumed they'd stay the same and hadn't thought of this. Anyone know?

 

[snappy]

I think I will buy OKW 2042 expiration if the resale price tanks due to this.
I would like to stay more nights at OKW NOW!!! Especially if I can get a guaranteed HH room when I want one.

I am not worried about resale, too much uncertainty all around.

 

[tfc3rid]

Here is what is very strange about all this... This is an assessment where you either pay X fee or you give up your rights for OKW from 2042 to 2057... Here's the thing... Owners have no rights past 2042... That's why it's very strange to me... It's clear from that that this is a moneymaking venture...

As for me, I'm not certain if I would do this, especially since the fee seems to have to paid by February 2008... That is very strange since for a lot of folks, they are still trying to pay off their mortgages from this purchase... And, given the bad credit/mortgage industry right now, I'm not sure how many folks will buy...

 

[pilferk]

OK, maybe someone who's a little more legally savy can help me out here.

It sounds like DVD is going to extend EVERY OKW contract in existence to 2057....the only difference being this: If YOU pay, you get to use the extra 15 years, if you do NOT pay, Disney gets use of those 15 years.

Now, here's my question: If you refuse to pay, and you have to cede those 15 years to Disney...can you still sell your contract via resale without Disney "signing off" on that sale? Would they, in effect, become part owner of your contract (for the 15 years in question)?

Or can you simply cede the 15 years from your contract, have them functionally "removed", and go on your merry little way like nothing has changed?

 

[tfc3rid]

Interesting point pilferk... You bring up a terrific question... I woulf tend to think that by extending EVERY contract to 2057, those who won't extend may not be able to resell...

 

[WebmasterDoc]

OK, maybe someone who's a little more legally savy can help me out here.

It sounds like DVD is going to extend EVERY OKW contract in existence to 2057....the only difference being this: If YOU pay, you get to use the extra 15 years, if you do NOT pay, Disney gets use of those 15 years.

Now, here's my question: If you refuse to pay, and you have to cede those 15 years to Disney...can you still sell your contract via resale without Disney "signing off" on that sale? Would they, in effect, become part owner of your contract (for the 15 years in question)?

Or can you simply cede the 15 years from your contract, have them functionally "removed", and go on your merry little way like nothing has changed?

Yes, owners who decline the extension can still sell their contracts. The contract would still expire January 31, 2042 although DVD might offer the additional years to the buyer in a separate deal.

By declining the offer (and technically deeding the rights to those 15 years to DVD), you would functionally remove those extra 15 years from your contract and could go on your merry little way like nothing has changed!

 

[lizanne]

I hope I don't sound too stupid but I don't understand how they can automatically extend a contract. Shouldn't you have to agree to extend a contract. Why do you have to opt out in a formal manner but have the contract extended by doing nothing?

I know DH and I are not interested. In '42 we'll both be 95.

 

[Dean]

Will DVC be able to redo the point charts for OKW after 2042 or will the extention keep the current point requirements "locked in"? Anyone know?

The way I read the rules it would be no different than today. The total amount of points is the same.

 

[Disney MAINEiac]

Disney is currently selling OKW for $92pp.

I bet they'll be $104 after they extend everyone's contract

 

[Laurabearz]

This is all very interesting.

My kids will be 43, 41 and 39 in 2042 prime breeding years... It sure would be nice for them.

BUT we are talking $15,000 plus at $25 per point... That's a lot of money.

I just dont see us doing it.

 

[WebmasterDoc]

I hope I don't sound too stupid but I don't understand how they can automatically extend a contract. Shouldn't you have to agree to extend a contract. Why do you have to opt out in a formal manner but have the contract extended by doing nothing?

I know DH and I are not interested. In '42 we'll both be 95.

That's the "catch-22" here - they are not automatically extending the contract, there will be a "vote" by the Board of Directors to extend the ground lease for OKW. If that passes ( ) the Members Special Meeting will hold a vote of our Representatives regarding whether to accept that extension along with the other resolutions spelling out the details of the Special Assessment and options to satisfy the accompanying assessment and/or lien. One of the proposed resolutions also authorizes "the association to execute any amendments to the existing Condominium Documents to reflect and memorialize the extension of the Vacation Ownership Plan."

The Special Assessment may be satisfied by paying the additional fee OR by deeding the extension to DVD. In our case, the extension is meaningless and this upcoming meeting and vote is merely a legal exercise with no real affect on our personal enjoyment of ownership. I view it as a legal device which allows DVD to extend the useful life of OKW. Current owners are being given the opportunity to purchase more years if desired but will face no changes in their ownership otherwise.

Of course, it remains to be seen how this will affect resale values for OKW in general and those who decline the extension in particular - but unless you plan to sell there will no affect at all.

Stay tuned!

 

[WebmasterDoc]

Will DVC be able to redo the point charts for OKW after 2042 or will the extention keep the current point requirements "locked in"? Anyone know?

DVD is not selling additional points as they are effectively extending every OKW deed, so except for the possibility of reallocating the point charts as they did in 1996, all other aspects of point requirements should be unchanged.

 

[CarolMN]

Sounds like they are doing the extension as a "special assessment" that every owner must pay.

You can either pay the cash price for the special assesment that extends the lease or you can deed your interest to Disney.

If you don't do one of the two, then DVC will put a "lien" on your membership - kind of like the local government does when they assess property owners for sewer or street improvements.

I don't know what a lien would mean - probably the member wouldn't be able to make reservations until the lien is satisfied.

 

[lizanne]

Thanks Doc.

I thought it had to do with extending the ground lease. All that legal mumbo jumbo confuses me.

 

[ReneeMoss]

Has anyone considered the (extra) fees involved for changing your deed to Disney until 2057 if you don't want to extend???
Also - the extra maintenance if you'd rather spend the money at another resort instead of extending?
We have 280 pts. at OKW and are in our 80's and are just about deciding to deed over to our children.
We have 7 grandchildren Ages 11 to 22 but none married, or even close.
We originally bought at OKW for $46 per point (1991 'Cast Cost')) and got free entrance to the Parks until the year 2000..............that was a fantastic 'perk'......I'd hate to 'rev' up my original cost to $71 per point (or $61 per point) with no special 'Perk' ---I think the $25 cost to extend is too much............but I will let my children decide.............although I doubt if any will be alive by 2057...............and who knows about their non-exsistant grandhilcren, as of now, with the way the world is going and the way kids are marrying much later, and having fewer children than our generation.... I don't think they will go for an extension.....JMHO

 

[Dean]

I haven't finished my evaluation of the extension in general but do have two thoughts that apply at the present time. It appears in reading the POS that DVD/DVC would not have the right to apply a SA for this purpose, this is simply not a type of SA that would be provided for in the POS. And that one could interpret the end point of our contract as the end of the land lease and that if the lease is extended, we would own automatically until the later date. That may be why they would want to structure it as a SA. I'm starting to think that either this will end up not happening OR they will sell it to the current members as a separate entity with the new ending date. It should be interesting to see what happens with this.

 

[castleri]

Will have to put this meeting on my schedule for the 24th - don't know what the others in the family will be doing but I am planning on a different type of Disney experience since I have never attended anything except one or the members weekly meetings at SSr and the Christmas party thing by EPCOT.

I will be 99 in 42 so really don't know what I will do- have one daughter who is a Disney fanatic who will be 70 and a granddaughter from another daughter who will be 56 so other than keeping the resale value up I don't see that I will be spending any more on this contract. The BCV one will go to the granddaughter(now 21 who is a Disney fanatic like me). Don't know what I will do with the OKW one and I don't see the BCV one being sold so will have to see what happens. I don't know if any of the children or grandchildren will want any of the contracts and the MFs that go with them anyway. At first I was thinking I would find a way to do it but probably investing the $3300 (if the amount in $15 a point for early decision) would be a better choice. Now I just have to find the $3300.