The former Sex Pistols star was in Russia when a blaze broke out in the kitchen of the Fulham home that he shares with wife Nora Forster, completely gutting the room and causing smoke damage throughout.
The fire, believed to have been caused by a faulty tumble dryer, has left the couple without water or electricity for weeks.
"We were gutted and so was the kitchen," Lydon told the Daily Mail. "Nora was rushing around back in London while I was rushing around in Russia.
"Learning Nora was not harmed was the best news I have ever had in my life. The fire was caused by the spin drier, which had my underwear in it at the time, it obviously wasn't fire retardant."
Lydon also took time to joke about his wife's understated reaction to the fire.
"[She rang and] said, 'Oh John, I don't want to disturb you. The house has burnt down'."
Lydon previously discussed his family's struggle to cope with the death of his stepdaughter Ariane 'Ari Up' Forster in October 2010.
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