Could this Peugeot actually be a Viscount?

Yes, it looks some like a lugless Peugeot, those came along cerca 1985+/-
www.bikeboompeugeot.com/Brochures%20UK/Peugeot%201986%20UK%20Brochure/Peugeot%201986%20UK%20Brochure%20Tristar.jpg (1986 British catalog, lugless Peugeots) Lots of other useful info here.

But how long were Crane derailleurs used? Were they not gone by 1980? This presents an anomaly in an otherwise minty looking bike.
www.disraeligears.co.uk/Site/Shimano_Crane_derailleur_%28DR-101%29.html

So, that makes it interesting, I note too, I'm studying the back chain and seatstays; and the little hole where those tubes meet at the back dropouts.

The "ping" (flicking the tubing with one finger to hear "ping") test of course, would settle this readily.

Can one see the hole in that dropout area clear enough?

Also, at least, for 1986, the cable guide going to the rear mech on the Peugeot is under on the rear chainstay, Viscounts seem to be on top of that back chainstay BUT... I understand that is how Peugeots are often dated, by whether the cables are on top or on the bottom. That appears to be the case in '85 too.

So, there are some leads.

That with the cable routing to the Rear Mech would seem revealing. How interesting to catch these little clues.

Perhaps requesting a serial number from the seller might help too.

Looks like some '70s PX10 Peugeots did use those metal clip on cable guides, I stand corrected.

www.mytenspeeds.com/My_TenSpeeds_1/Bicycles_Table/French_Bicycles/Peugeot_Bicycles/PeugeotPX10/PX10_1963_Mine/PX10_1963_Mine_RawBuild/PX10_1963_Mine_Build1/PX101963_Build_Full_TQFront_1.jpg

Lugless Peugeots, not that certain.

USA '84; www.bikeboompeugeot.com/Brochures%20USA/Peugeot%201984%20USA%20Brochure/Peugeot%201984%20USA%20Brochure.htm  Sort of a rant.

P8; for example: www.bikeboompeugeot.com/Brochures%20USA/Peugeot%201984%20USA%20Brochure/Peugeot%201984%20USA%20Brochure%20P8.jpg ("internally brazed" was the kind of lingo used) with braze ons:
compare to that red bike.

Lambert brake levers; pretty interesting.

Despite all the writing I did, I hope I didn't meander too much, I think Cusqueno likely called this right. 

I agree with the previous postings as to the difference, and lack of, braze ons, cable routing and so forth. The lugless Peugeots I have seen (as well as the picture that was posted)have a very different seat stay, and seat clamp treatment. Also, if a Peugeot, the rear drop outs would be adjustable, and it would have 700c wheels. If I imagine it without the decals, I see no Peugeot in it. The seat stay treatment and seat clamp do look Lambert/Viscount to me. I think it indeed to be of Lambert/Viscount origin. The giant gorilla in the room is, why someone would paint it as a Peugeot? The seller (CJ Cycles) looks to be mostly a Mountain/BMX shop; perhaps they were hoodwinked? Perhaps one of our English members could expose it as fraudulent, offer £50 for it, and set things right.

Cheers
Jim

I have a soft spot for Peugeots and very much like my PY10 www.pedalroom.com/bike/1984-peugeot-py10-27898. I used to have, and very much enjoyed, a PH10 (Reynolds 501); The PY10 is a bit nicer (having Reynolds 531Pro) but the PH10 was an excellent ride as well.  I think you would very much enjoy the bike in the ad.

Cheers
Jim

Well, it does say "Not sure on brand of frame and forks. Has been remade into a Peugeot bike" which I take to mean simply rebranded by the application of stickers the seller happened to have in the garage.

Also, why is it headlined as having 700C wheels when the description subsequently states 27"?? Looks a lot bigger than a 22" frame, as well.