The dead woman has been identified Margaret London of 7 Cross Street, Islington. She would have been 86 on Thursday.
Eyewitnesses said her sister, 93 year old Olive London, was snatched from the blaze by a public spirited citizen.
The woman said she was in the colonial two-bedroom house preparing a meal for herself and her stroke-afflicted sister when she realised that the house was on fire. She recalled attempting to extinguish the fire with some water when she was removed from the house.
Though the cause of the fire was not immediately known, neighbours said the aged women used candles and a lamp after switching off the electricity.
The charred remains of Margaret were retrieved after the blaze was extinguished by fire fighters who battled low water pressure in the area.
The London sisters lived together alone. They had no children.