I am considering separation (unmarried) and am trying to figure out what future housing for me and DC (9&6) might look like. The sale of our jointly owned home would generate enough capital (50-50 split of equity as have paid for mortgage this way, right down to the penny) for me to pay a sizeable deposit on a small house in our area (already a cheap area, so no real chance of picking up a cheaper deal by going out of area as everywhere else is more expensive). I would be able to buy a 2 bed house with a manageable mortgage. But is it crazy to buy a 2 bed house for the 3 of us (I'm resigned to sleeping on a pull out bed in the living room)? I can't seriously believe that a 3 bed private rented makes more sense, but maybe I am missing something? I have seen a couple of 3 beds, but they have been in desperate need of refurbishment, like all downstairs floorboards pulled up etc, not just cosmetic. I won't have spare funds for substantial refurbishments (or extending) bar basic fund for emergency repairs.
For context, I could easily afford to stay in current home (would love to) and pay mortgage but really want to avoid things getting tangly with DP, as I can not afford to buy him out. He's offered to take joint savings in place of 50% of equity buy out, but he'd lose out by tens of thousands, and I am pretty sure resentment would build eventually. I want him to be in a position to be able to set himself up in a home in which he could have DC to stay too, although I anticipate I would have them most of the time.
So, what do I really need to consider if thinking of buying a 2-bed house for 3 people? I'm aware I am probably looking at the whole thing through giddy freedom goggles, trying to make it OK.