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I changed two East Coast Advanced tickets @ £10 each on the phone some months back.
Like you I was confused. What technically happens is they cancel them, charge you a tenner, and you start again. I seem to think this actually involved the funds being refunded and them a new charge made.
On 16th October LM sent me this email:
Where have you been?
We've missed you! As it's been a while since you last booked online at londonmidland.com,
we've got a 25% discount offer for you.
To claim your discount on any London Midland 'Advance' ticket, follow these simple steps:
click...
We are aware of an issue with emails from the Forum to Microsoft-based email accounts (hotmail/outlook/live.com email addresses). This is being looked into currently, thanks for your patience meanwhile.