You don't say what you are wanting to use the bike for. Commuting or just for pleasure? From the look of the tyres on your Raleigh MTB I'm guessing you don't go off-road much?
If you are attached to your Raleigh it's possible to convert it (it looks in nice condition BTW).
There are a few things to consider though.
I assume you will be riding down the steep hills as well as up! The cantilever brakes will not be good enough to cope with the extra performance without constant attention and will get through pads quickly. They will not be as good as disc or v-brakes, particularly in the wet.
Here is my 1992 Giant MTB which I converted:-
The first thing to say is that it is a Yosepower 350w. rear hub kit so it doesn't fit your "completely legal" remit, but I wanted a full throttle and the Yose 250w is only "walk assist".
I have their 250w. kit on my hybrid and the performance is similar - if anything the 250w. gets up hills a bit better.
I changed the cantilever brakes for good second hand Tektro v-brakes from ebay and fitted new pads.
To fit the downtube battery I had to get an adaptor as the drinks bottle mounts were too low on the frame. This is a common problem and the adaptors are available from Yose or on ebay.
Yose cables are ridiculously long but I was able to run them up the legs of a rear rack using spiral wrap (the "coil" on the top of the rack is a bike lock BTW!
)
All in the conversion cost me about £450.00.
You are probably thinking "OK, but does it get up hills?". Well, yes it does but as with any pedal-assist the clue is in the title - you have to pedal! Yose claim 58Nm for their 250w. kit, but if you think you will need more I would suggest that you talk to Woosh about a 48v. kit. It will cost more but will be a more suitable solution and you will get good advice and service.
The Yose 250w. rear hub kit for a freewheel (which your Raleigh has) is out of stock anyway.
I'd be tempted to buy a Santana from Woosh and just keep the Raleigh as it is. The problem with that is I have a much cherished vintage touring bike, but since going electric I haven't bothered to ride it at all!