Tony
I had a free website with Microsoft and then found out that they were dropping it in favour of the new paid for 365 so I built a new free website with weebly.com and just transferred my domain name. However for some reason Microsoft attach funny extensions to the web pages, "aspx" or something very close i forget, the problem I had was that google and indexed these pages for my google ranking and when I built my new website and transferred the domain the extensions no longer existing and I lost my google ranking. Just something to be aware of with microsoft as I see that the same extensions appear on their new 365 websites which is not a major problem but it might be if you ever need to transfer your domain name like me.
Have a look at weebly.com its free with free hosting and very easy to use.
We were in the same situation, luckily we had another website .co.uk that had been built for us by a new web design company.
After looking at all the options we decided the best option was for him to redirect our .com from office live to the .co.uk.
If anything our rankings have improved , we have still got the ratings from the old site together with the rankings from the new one.
We kept our email addresses too.
I dont know how he did what he did but im very glad he did
The cost of this service £1.99 a month for hosting.
All the other work, including the design of the .co.uk site he did in return for adding us to his portfolio.
Must be working as we are flat out at the minute, mostly new customers and commercial too.