You shouldn't need to do much sanding. There are chemical strippers and brighteners you can use. Lots of brands to choose from, and many are basically the same thing. Just go to your local marine supply and ask about the products they have.
After the chemical stripper, then sand enough to remove the high spots so the wood is comfortable on the hands and feet. Then use a chemical brightener. This takes the dark staining out of the wood very easily, and makes it look much newer after the top coat.
Then apply your top coat. I have used Sikkens Cetol Marine on Teak before, and I really like it because you can re-coat every year or two without doing all the stripping every time. It also seams very flexible and never peals off...it just wears away eventually. Others do not like Sikkens, so you can do a search on "Sikkens" to read more and see what you think.
I wouldn't use a polyurethane type coating because eventually it will crack and peal, and would seem like a difficult job to remove.
Teak oils could be used, but they require re-coating on a regular basis (several times a year)
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"Knot Easy" 2000 Horizon 240 Volvo 5.7GS /SX
tow: 2017 Honda PILOT EXL-AWD
prev. boats:
'87 Chaparral 198CXL 4.3 OMC Cobra
'69 Jetstar 16ft Ski Boat, 115hp Yamaha
'68 Aluminum Jon Boat, 3hp Sears
'64 Water Wings