I prefer the diverse Bayswater neighborhood as I always take the Heathrow Express into Paddington Station. Where I prefer to stay is a 15 minute stroll from the station. 3 tube stations and plenty of buses along Bayswater Rd. You are close to Hyde Park as well.
Advice...if you do choose to take the 15 minute ride into Paddington Station, book your tickets in advance. At least 2 months. Will cut down on the pricey ticket cost.
Some posters abhor the Express and will recommend the Connect (which is fine) or to save money advise taking the nearly 1 hour tube ride via the Piccadilly Line into to London.
The choice should be based on budget, how much luggage you are taking and convenience.
As far as what to do.....SO MUCH is available.
Ask your teens what their interests are. History? Food? Museums? Theatre?
Have them google London. Do some initial research say on The Royals, Jack the Ripper, the London Eye, the street markets and of course, Harry Potter.
Sit down as a family and read about the London Walks....www.walks.com....
Have they seen a musical? Check www.theatremonkey.com to see what's on or take them to see the venerable Mousetrap.
Persue Timeout London. I get the weekly newsletter. Always something intriguing and unique.
Start looking now to see if you can get tickets to the new Postal Museum ride the mail rail.
postal museum.org
If no one is afraid of heights the Tower Bridge Experience might be something to try.
tower ridge.org.uk
Camden Lock Market and walk along the canals.
If not raining ride bikes in Hyde Park.
Definitely Brick Lane. Maybe the graffiti tour walks.
was going to suggest the Whitechapel Bell Foundry but I see now it's permanently closed. Sigh.
Check hours for London's Silver Vault.
Walk inside Liberty.
Treasure Room at the British Library....and we aren't talking gold or silver.
Tower of London.
Westminster Cathedral
London Transport Museum
As I said SO MUCH to see and do.