Looks like a more modern/later version of the Raleigh Sports. The frame is lugged in a similar way and the way the seat stays connect to the seat tube makes it look like it was made in Nottingham in the Raleigh pattern. Maybe the bike was assembled there but imported at the late date of 1986. The cranks are even cottered -wow. What size are the tires? Could they be fractional MTB 26's or are they classic 590 three-speed wheels? Alloy or steel rims?

Is the frame straight?

I'd refurb it and ride it or maybe even flip it for a few dollars. My thoughts are peel that nasty orange and yellow hash marks off of the frame and put some North Road bars on it and it might sell for a pretty good price -more than $100 I would imagine. Probably needs all the bearings repacked including headset and BB and new tires. If that is rust on the rims it can be removed pretty easily with OA. A new set of tires probably. I'd put new pedals on it too as those look really cheap/nasty. A pair of rubber block MKS pedals would make it look really nice after cleaning up. Cables may or may not be salvageable. Probably replace the brake pads too.