My tenant is interested in buying me out

I wouldn't have let them know that there was any mortgage on the house at all. Let them make an offer and if they don't, so what, just continue to rent to them.
 
Actually, when I was offered a sale by my landlord, a friend who is an estate agent handled the price negotiation. Came up with a price that seemed reasonable to both (until legal issues popped up and made it impossible).

Anyway a valuation typically costs around 150 euro, get someone to value it and start from there. I wouldn't seriously discount it, but take into account your own savings as opposed to the cost of putting on open market.