Visa status to enter on Tier 2 online form

[arts99]

Hello,

Can anyone share their knowledge/experience as to what shall be the most appropriate option to select for someone who was on a Tier 4 General student visa, completed his degree in UK and made a Tier 2 General application which was refused and then he applies for administrative review which is again refused and he has given 7 days to either leave or make a new application.

The Tier 2 expired in March 2016 and Home Office took over 7 months to process the application.

Now he has a sponsor and meets the criteria and making a new Tier 2 general application and as part of the process asked if he has valid leave to remain. If he selects that he has no leave to remain then the online system does allow to proceed further but gives a warning message that the application is likely to be refused.

Please guide.

Thank you