Rooted Nexus 4. OTA 5.0.1 update fails. What must I do?

[denysm]

Unlocked and rooted Nexus 4 running Lollipop 5.0.0. Received notification that 5.0.1 update was available for download. Download completed successfully. Rebooted. "Install failed". I have repeated twice, same result each time. What can I do? Do I need to unroot and lock for the update to work?

Thank you.

 

[gone down south]

Are you on stock recovery? Any system files changed?