Adoption Rate of Old Key West 15-Year Contract Extension Written by Wil Lovato. December 03 2019 Posted in Financial News

Twelve years ago, Disney Vacation Club offered owners at Disney's Old Key West Resort the opportunity to extend the expiration date of their contracts from January 31, 2042 to January 31, 2057. Based on documentation recently filed with the Orange County Comptroller, we now have an idea of what percent of Old Key West’s total points were extended since that initial offering in 2007.

Back in 2007, Old Key West owners were given the opportunity to extend the expiration date of their contracts from January 31, 2042 to January 31, 2057. Owners could pay $25 per point point--initially discounted to $15 per point--to extend their ownership interest for an additional 15 years.

From August 30, to November 1, 2019, Disney filed 8,517 Old Key West “extension” deeds with the Orange County Comptroller for those owners who chose to extend. These extension deeds contained 1,468,764 points, or about 19.1% of Old Key West’s total points.

Each extension deed shows the name of the owner(s), a description of the undivided real estate interest and Residential Unit, and the number of Disney Vacation Club points. A paragraph in the deed states:

“The purpose of this Deed is to document and confirm the acquisition of title to the Extended Ownership Interest, as of the Effective Date, by the above names Grantee(s), and to further document and confirm such title in subsequent buyers, personal representatives, heirs, successor and assigns, or other transferees, claiming by through or under the named Grantee(s), if any.”

The deed expressly states that Disney has conveyed to the owner(s) the Extended Ownership Interest commencing January 31, 2042, and expiring on January 31, 2057.

Those who chose not to extend were asked to submit a Quit Claim deed conceding ownership back to Disney as of the original January 2042 end date.

Although only 19.1% of Old Key West’s points were extended by the public since the initial offering in 2007, the percentage of points owned by the general public with the extended 2057 expiration date has continued to increase every year since then. All Old Key West deeds sold by Disney since September 2007 have the later expiration date. In addition, whenever Disney reacquires an Old Key West deed with the original 2042 expiration date via foreclosure proceedings or by exercising its right of first refusal on resale transactions, it resells the points with the later 2057 expiration date.

Dating back to March 2010, Disney has sold more than 550,000 Old Key West points with the 2057 ending date. Combined with the 1.48 million points voluntarily extended, more than 2 million points owned by the public now have the January 2057 contract end date. This total represents more than 1/4 of the 7.7 million points which make up Disney's Old Key West Resort.

Contract extensions have never been made available for any other DVC resort. Five other properties currently share the 2042 expiration date including Disney's BoardWalk Villas, Disney's Beach Club Villas, Boulder Ridge Villas at Disney’s Wilderness Lodge, Disney’s Vero Beach Resort, and Disney’s Hilton Head Island Resort.

Wil Lovato is a contributor to DVCNews.com and has been a Disney Vacation Club owner since 2009. His DVC Home Resorts include Copper Creek Villas, Bay Lake Tower, Animal Kingdom Villas, and Aulani. He can be found posting on many Disney discussion forums under the username of “wdrl.”

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