Extended OKW

[Gaudio45]

does Disney basically ROFR all the OKW extended contracts?

Just had my offer accepted by seller but I'm not getting my hopes up...

 

[_auroraborealis_]

No. They don't. They are more likely to take 2042.

 

[Gaudio45]

Ohhhh really??? I thought the scooped up the extendeds.

 

[GoofyCoaster]

When Disney picks up an OKW 2042 contract through ROFR, it becomes a 2057 when they resell it direct. So this is a good mechanism to get a greater percentage of OKW contracts into the later deed expiration.
The extended usually sell for more per point so there’s even less incentive to buyback an extended vs a ‘42.

 

[Gaudio45]

Ohhh that makes sense. Didn't think of that. Good to know, thanks!!!

 

[gwensgoofy]

does Disney basically ROFR all the OKW extended contracts?

Just had my offer accepted by seller but I'm not getting my hopes up...

I've been searching high and low for an extended OKW contract...what resale company did you use?

 

[Gaudio45]

I've been searching high and low for an extended OKW contract...what resale company did you use?

DVCresalemarket. Com

 

[Jerry@dvcstore]

We get the Extended (2057) Old Key West packages in from time to time and they typically sell quickly, but they normally pass Right of First Refusal. The prices are usually $10 to $15 more per point than the regular 2042 packages, but that is where they need to be to avoid Disney stepping in. If you are interested in purchasing an extended OKW, we can add you to an email update with the new listings we offer as well as a text message alert option.
Please feel free to visit our site...www.dvcstore.com and we will be happy to help you.

 

[kcall13]

Anyone know how much price per point is to purchase OKW direct and if so to you get use of them until 2057?

 

[ELMC]

Anyone know how much price per point is to purchase OKW direct and if so to you get use of them until 2057?

$156 and yes it's a 2057.

 

[kcall13]

That seems like the best buy if purchasing direct to me. Any thoughts?

 

[ELMC]

That seems like the best buy if purchasing direct to me. Any thoughts?

Technically Saratoga Springs is the best buy if purchasing direct. Close in expiration date, only $4 more per point, but dues are 80 cents less.

 

[kcall13]

I will look into that one -- I thought I saw reviews that it wasn't that nice and it was really far out -- long commute times to get around

 

[ELMC]

I will look into that one -- I thought I saw reviews that it wasn't that nice and it was really far out -- long commute times to get around

I think it would be very helpful for you to do some "boots on the ground" exploring. What better way to justify a couple extra trips to Disney? SSR and OKW are similar in size are right next to each other. SSR is closer to Disney Springs: if anything OKW is more remote. You may be thinking of the Treehouse Villas at Saratoga Springs and yes, those are quite isolated. But those are huge 3BR units so I don't think it factors in here. Finally, SSR is undergoing a complete refurb, from what I understand the newly done rooms are gorgeous.

 

[_auroraborealis_]

OKW is only a good buy direct if you are willing to accept the 2042 risks there, and actually like staying there.

 

[OKWAnneMarie]

OKW is only a good buy direct if you are willing to accept the 2042 risks there, and actually like staying there.

May I ask what you mean by the “2042 risks?”

 

[cedricandsophie]

We just bought 220 extended OKW points for $100 a point. Passed ROFR in less than 2 weeks.

 

[_auroraborealis_]

May I ask what you mean by the “2042 risks?”

Disney offered the extension to 2057 as an opt-out, because by extending the land lease they effectively extended everyone, whether they paid in or not. All of the contracts were extended once the DVC/DVD Boards voted back in September 2007 so nothing else needs to be done on January 31, 2042. Every contract for OKW sold by DVD since that vote in 2007 are extended contracts along with a small number of resale contracts where the owners paid for the extension before selling.

Officially, the extension was opt-out. The wording in the legal documents stated that a lien would be placed on the ownership of any owners who did not either extend or sign the quit-claim. A lot of owners didn't do either. However, because of how the land lease works they may well have claim on RTU past 2042. There is potential legal shenanigans around that, either by people holding 2042 contracts, or by Disney themselves.

Even if you ignore that and assume all 2042 contract holders go quietly into the good night, Disney will own 40-60% of OKW on January 31, 2042, scattered across units/buildings. DVC cannot remove a Unit from the Condominium Association without removing all points associated with that Unit from the Condominium Association. At OKW, if a person owns a deed that shows a real estate interest in Unit 35, then those underlying points are represented by Building 35. If Building 35 is removed from the OKW Condominium Association, then everyone who owns points in Unit 35 will lose those points.

Will Disney try to sell half the resort on 15 year direct contracts? Will they keep the units cash and provide 40% discounts on a frequent basis? Realistically, a lot of the people who will make these calls are probably in B-school right now at best, so no one knows.

 

[Jenniebee]

But most likely, by 2042, just a small percentage of contracts will be expiring, right? I mean it will be only people who bought pre-2007 and held, and then within that group, those that did not take the extension. I am thinking that will a small percentage of owners by then, no?

If Disney does not want 2042 contracts to keep recirculating around the resale market they can easily correct that with ROFR and solve the issue pretty easily.

 

[chalee94]

Lots of resales continue to be posted for OKW-2042. I'd bet at least 1/3 of the resort will be turned over to Disney at 2042.

Edited to add: one ballpark estimate suggested that maybe 15-20% of owners extended during the original offer period.

https://www.disboards.com/threads/dvcs-old-key-west-extension-ordeal.3078317/
Disney can ROFR as many OKW contracts as they want. But that would leave them responsible for annual dues until they can find direct buyers. I get the impression that demand for OKW direct sales is not as high as you believe.