We present the completion of a program to cross-correlate the SDSS Data Release 1 and 2MASS Point Source Catalog in search for extremely red L and T dwarfs. The program was initiated by Metchev and collaborators, who presented the findings on all newly identified T dwarfs in SDSS DR1, and estimated the space density of isolated T0--T8 dwarfs in the solar neighbourhood. In the current work we present most of the L dwarf discoveries. Our red-sensitive (z-J > 2.75 mag) cross-match proves to be efficient in detecting peculiarly red L dwarfs, adding two new ones, including one of the reddest known L dwarfs. Our search also nets a new peculiarly blue L7 dwarf and, surprisingly, two M8 dwarfs. We further broaden our analysis to detect unresolved binary L or T dwarfs through spectral template fitting to all L and T dwarfs presented here and in the earlier work by Metchev and collaborators. We identify nine probable binaries, six of which are new and eight harbour likely T dwarf secondaries. We combine this result with current knowledge of the mass ratio distribution and frequency of substellar companions to estimate an overall space density of 0.005--0.05 pc^{-3} for individual T0--T8 dwarfs.