Mrs Howard, a former nurse, said she was out completing some errands with her two grandchildren, Danny, two and a girl, Andi, aged one, and she had been tidying up the council-owned flat following the recent renovations.
"There was this really loud clap of thunder and then about 30 seconds later the smoke started appearing," the mother-of-three said.
"I didn't think much of it at first, I just thought it was overcast. Then I heard the smoke alarm, the flat then filled with smoke and we quickly got out of the flat.
"It just happened really quickly. It was scary. There was all this thick black smoke billowing in."
She added: "I thought it was with the grace of God that I got out. Some people believe it was caused by a lightning bolt.
"It is totally devastating. The flat has a lot of smoke damage and we will have to speak to the insurers about it."
Her daughter's four-month old pet cat, Poppy, is still missing.
She added that the fire occurred a day before the sixth anniversary of the death of her 36 year-old husband, Andy, who was killed in a motorbike accident a few streets away. A man was jailed for causing his death.
A spokesman for the London Fire Brigade said investigations were continuing but "early indications suggest that it was not caused by a lightening strike".
While there were claims it started in the kitchen, he could not rule out that lightning was the cause.
A London Ambulance spokeswoman said one woman was treated at the scene for minor smoke inhalation.
"We sent a duty manager, an ambulance crew and two hazardous area response team units," he added.
A spokeswoman for Southwark Council said the building recently passed a fire risk assessment audit.
Residents affected would be housed in emergency accommodation. Four flats were damaged in the blaze.
It is understood the occupant of the flat, who has not been named, was not home at the time of the fire.
The Red Cross said it was helping with emergency relief for about 30 evacuated people including a baby.
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