A LOCAL businessman who is raffling his house to raise money for two charities dear to him and his late wife has responded to critics who have suggested his motive may not be philanthropic.

As reported in the Ross Gazette two weeks ago, 66-year-old Mel Yates hit on the unusual way to sell his luxurious Gorsley home, along with its contents and his Mercedes car, after his wife Tessa died of cancer last year.

The house, he said, was "full of happy and sad memories", and he wanted to move on. He also wanted to make a donation to Marie Curie Cancer Care, whose nurses cared for his wife during her final illness, and to the Injured Jockeys Fund.

But since publication of Gazette's original article, several readers have contacted the newspaper to express concern about the way the raffle was being organised.

The most common query focussed on the discrepancy between the house's £700,000 value and the £840,000 that would be raised (after charitable deductions) if the target of 35,000 ticket sales were reached. One reader even expressed doubt that the house was genuinely worth the asking price quoted by Mel Yates.

Another drew attention to the raffle terms that would come into force were fewer than 35,000 tickets to be sold. In such a scenario, the holder of the winning ticket would win only 65 per cent of the total accumulated monies (after charitable deduction), the remaining 35 per cent to be held by Mel Yates.

This split, were it applied to the proceeds raised by the sale of only 17,500 tickets, half of the target, would leave him with £147,000 – as well as the house and car.

But speaking to the Gazette, he rejected all suggestions of profiteering. "I am genuinely trying to raise money for Marie Curie and the Injured Jockeys Fund. I do sometimes think, 'Why did I ever do this?' This is not for the faint-hearted. I could easily have sold the house in the normal way, and given just a few thousand pounds to the charities."

He pointed out that the house was valued at £720,000 by estate agents Steve Gooch in 2008, and said that as with any competition, there are heavy administration fees to pay.

As well as taking the necessary steps to comply with Gambling Commission regulations, he says he has to pay stamp duty of £40,000, credit card fees of around £40,000, printing and promotional costs in the region £30,000, and legal fees of around £8,000. These expenses do not include the donations to the two charities, which are guaranteed at 50p each for every £25 ticket sold.

Mel Yates says, "I owe Marie Curie a debt of gratitude. I am not trying to do anything for profit – but I am not prepared to work for nothing. I have had beautiful letters of support and I will carry on."