As [MENTION=873145]HoneymoonFlyer[/MENTION] said seat fees ( something that annoys us all don't worry) aren't refundable and they're pretty strict on it. That said I once upgraded from WT to Club and after a chat with a manager ( the phone agents simply can't override the fee or at least that's what I was told) I made clear that I wasn't paying £60 per person when i'd just paid them £1800 extra and politely made clear he could choose between the 120 and the 1800 as they could refund the sale if they wanted the seat fee. I was only a lowly Blue then( although the outbound in Club would make us Bronze) and in fairness he was charming and accepted my point although he made clear it wasn't something they did and I shouldn't ever expect it to be repeated.
It CAN be done but, in my experience anyway, required some polite firmness( i'll emphasize the need for being polite) . If you at least manage that it might make the upgrade seem better. I'll keep my my fingers crossed for you if you decide to give it a try.