In case anyone was having the same problem.... The contacts can be updated if the account you sync it with is Exchange and not Outlook. Simple but naturally when I set up my phone I saw Outlook... So I used outlook but now I change it and it's all good!!!
I have all my contacts in Hotmail. I just bought a lgg4 and I sync the contacts. They appear ok but I can't update them... They merge well with WA and FB contacts but they do not show any pictures and if I can't update them it's rubbish. Any idea???