A school teacher who won a £2m mansion in a £10 Win My Home prize draw has been awarded just £5,000 after organizers failed to raise enough money in the competition.

• Loretta, 35, said she is sad because her current home is a “death trap.”

A schoolteacher who won a £2million mansion in a Win My House prize draw said she took home just £5,000 – after organizers failed to raise enough money for the competition.

Loretta, 35, from Radford, was announced as the winner of the luxury property in Nottingham.

The clip shows a woman approaching Loretta’s house with a bouquet of flowers before telling her: “You’re the winner of the Nottingham raffle” – without explaining what she won.

Loretta said she was devastated when she was then told she would not get the house and would instead receive £5,000.

“It was heartbreaking because right now my property was a death trap, so that’s why I entered it,” she said.

One of the terms and conditions listed on the website – a rule Loretta said she had not seen before entering – states that if £2.5 million in net sales is not reached, the winner will receive 50 per cent of the net proceeds.

But in emails which NottinghamshireLive said they had seen, competition organizers claimed they had made a loss and awarded £5,000 as a goodwill gesture. They added that they had spent nearly £200,000 on “marketing costs” and had been unable to process Visa payments “for a long time”.

The prize draw, which took place between March and August, provided the opportunity to win a six-bedroom, four-storey villa.

Packages offered ranged from 15 inserts for £10 to 1,000 inserts for £350, with the option of one free postal insert. The winner announcement video, which shows Loretta’s elation upon hearing she won the drawing, is accompanied by a statement.

“She and her husband were looking to buy their first home together!” the message read. We are so happy for you both and wish you all the best in your next chapter, followed by a home emoji.

Speaking to NottinghamshireLive, Loretta, who wished to withhold her surname, recalled the interaction. “A couple of people came up and said yes I won, so I said yes, where are my keys?”

“They told me I hadn’t won the house but I had won the grand prize of £5,000. I was like ‘Okay, thanks’ and they said ‘Unfortunately because we haven’t raised enough money, I can’t give you the house.’

Instead they told her they could transfer £5,000 directly to her bank account.

Loretta and her husband were desperate to get away from their council house, which she said had “horrible mold”.

“All we’re trying to do is get off this property,” she said.

“I went into it thinking this could be a fresh start, and maybe it will happen.” She also said she was receiving messages and being approached on the street by people who saw her in the ad video and thought she had won the house.

“People have called me to congratulate me, but I tell them: ‘Don’t congratulate me because I didn’t win.’ They say I’m lying,” she said.

“I want everyone to stop saying congratulations. It doesn’t mean I’m not grateful for the £5,000.

“Even if they say we can’t give you the house but here’s £50,000, that’s something. But £5,000? £5,000 now can’t even get gas and electricity.”

In response to Loretta’s concerns via email, Win My Home said the terms of the terms were “very clear” that the winner would receive a percentage of the net profit if not enough money was raised.

“Unfortunately, after almost £200,000 in marketing costs and the issue we discussed of not being able to process Visa payments for a long period, there was no profit and in fact we made a loss,” she said.

“The amount we gave actually came from our personal pockets because we wanted to give you something as a goodwill gesture and hope it will make a positive difference in your lives.

“The alternative was to give away anything we obviously didn’t feel good about.” She added that the financial problems she faced in the lottery had been resolved and said, “There is a great chance that the next lottery will be a great success.”