Okay finaly got pictures... Its really difficult to tell if the connection between the seat stay and drop out is stable. I"m planning on refurbishing this bike and selling it. What is my best course of action to make sure the frame is safe to ride.
Looks like a p*ss-poor job of brazing at the factory. Raleigh wasn't known for quality brazing in those years. It doesn't look damaged; most of the strength is where the little tang on the dropout goes up into the seat stay, and most of the force is perpendicular to the seat stay. It's probably not dangerous, but it would bug the heck out of me, waiting for it to fail. Fixing it would ruin the paint, and ya gotta be sure the bike is worth repainting.
no the seat stay does not really move... is this damage or the result of poor brazing. Either way is it rideable as is or what can I do to strengthen this area. I don't care about damaging the paint in that area as long as the frame is safe to ride.
this is the kind of workmanship that makes me wonder why anyone would collect Ralieghs, other than as an example of poor workmanship. I don't really understand their level of quality control in those days, it was just ridiculous. Not only was the joint not fully brazed, but they apparently forced the seat stay on and broke the tube. This would almost be forgivable if they had then filled the joint with brazing material
You didn't show us the braze at the front of the dropout, if it is solid I wouldn't worry about it. I wouldn't use the bike to carry a load, who knows what else is wrong with it.
the view from the front if very similar to the view from the back. What if I got my friend to fill the gaps with brazing material would that help or should I just get rid of the frame and sell it as is.
I am not sure what to advise, although i don't think that a repair is economic. As fietsbob says, you really have to take things apart to clean it up enough to do any good. And that's a can of worms, particularly since Raleigh pre-broke the tube. I would consider commuting on it since it isn't likely to fall apart. The other option is to sell it with full disclosure.
I'm fine with keeping it as it is and refurbishing the bike to sell as long as it is safe to ride as the frame is now. My guess is this frame was ridden quite a bit as a commuter but has not been ridden in the last 15 years.