How much should I offer for this 1.0l K11?

Hello, I have a CVT K11 but want a manual one and my neighbour is selling his for £500, but this seems too high imo:

-2000, celebration model, 90k miles, 1.0l, part service history.
-Exterior is poor - dent in boot, scratches, peeling paint, etc.
-No rust except a small spot on the door, size of a £2 coin that I think I can fix myself. It was welded 2 years ago and seems okay now with 10 month MOT.
-It has one advisory - 'Play in steering rack inner joint'. Not sure what this means tbh. It handled well to me but I'm no expert driver.
-Brand new LUK clutch kit (fitted one week ago with £200 receipt)

I gave it a test drive and it was surprisingly nippy for 1.0l. I don't want to lowball him or anything as he's a good bloke. What's a fair price? Cheers
 
About £300 it's what I asked for ones about ruff around the edges but with 12months test. Could you get some pics and worth a poke at the sills, front and rear foot wells , crossmember, boot floor ,fuel filler and around it (they rot above and behind) inner arches on the rear , rear vents, arch lips, drivers inner wing , gearbox serviced , engine serviced (take the oil filler cap off and stick your finger and and feel the roof of the rocker , black or gunky can mean poor arriving, brake pipes, pull the boot carpet back and carpet on the arches ,

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