For a handful of timeshare companies, the recent pandemic has been a burden they’ve been unable to outlast. After operating in the red from 2015 to 2018, the Canadian properties at Carriage Hills and Carriage Ridge are set to close down on January 6. While this may come as a disappointment to some, many vacation owners at the Horseshoe Valley timeshare resorts are feeling relieved.
In fact, a major culprit of the collapse at the properties was due to a growing number of buyers walking away from the perpetual clauses of the purchase. Over time, owners (most of which were aging) didn’t understand why monetary obligations continued to increase when their mortgage was paid off and the timeshare held no value. When they left their fractional interests, a financial strain was left on the remaining ownership pool. In turn, nearly 25% became delinquent on their payments.
Judge Suggests Carriage Hills/Ridge Shut Down.
As problems at the Horseshoe Valley timeshare resorts grew, operations knew their backs were up against the wall. Like many businesses, ownership often wants to pull through for employees even when they can’t. But this often keeps them from making necessary decisions. Because of this, Justice Barbara Conway (Superior Court of Justice in Toronto) was asked to endorse the proposal that closed the resort down by the first week of 2021.
Leanne Williams, who legally represents the resorts, said, “A lot of people are, unfortunately, losing their jobs.” Wyndham Vacation Clubs is contracted to manage both locations and also owns a significant number of intervals at the properties. Spokesman Steven Goldsmith has yet to comment on the number of expected casualties, but wrote: “We are evaluating the evolving situation to determine the impact on our associates. In the meantime, we continue to provide outstanding management services to the resort owners.”
The Voice of the Timeshare Owner Was Heard.
Justice Conway’s order came after a survey was sent out to timeshare owners at Carriage Hills and Carriage Ridge regarding their experience. Nearly 11K buyers in over 17K intervals spoke up about their concern with property management and the obligations they’ve endured. The Superior Court was able to conclude that the majority wanted to get out of their timeshare agreements and move on. Her statement read, “The people have spoken, the very point of the survey.”
Since most owners are no longer interested in the Horseshoe Valley timeshare resorts product, Justice Conway also reiterated that there will be no financial restructuring of the properties. Moreover, those who choose to exit their contract will not incur additional charges or fees. The proposal went on to conclude that the board of directors for both resorts will remain intact to ensure an administrator (BDO Canada – ironically a debt solution expert) can close and sell the properties by the deadline.
Aside from internal issues and a lackluster experience, the property itself has begun to fall apart in recent years. Because of the collapse of customer satisfaction, the funding for repairs hasn’t been available. As a result, the attention that each building needs wasn’t provided. For example, a few staircases at Carriage Hills haven’t been renovated because of the estimated $136K price tag. All of these factors led to Justice Barbara Conway’s decision to support a shut down proposal.
The Demise of Horseshoe Valley Timeshare Resorts.
In all, both Horseshoe Valley timeshare resorts carry 250 units within 11 buildings across 28 acres of land. Although they’re separate from the major ski and golf resort in Oro-Medonte Township’s Horseshoe Resort, tourism is in demand. Despite a great deal of interest in the property, current owners aren’t expected to receive much restitution. But for some, eliminating payment obligations, like maintenance fees, is enough.
If you’re concerned about your timeshare agreement and would like to speak to a professional about your options, we’re only a phone call away. At VOC, we don’t believe in pressuring you into terminating your agreement and take pride in helping you exhaust all of your options. You can schedule a free consultation or proceed with our qualification form below.
