Formal:
* Elle habite à Londres. (pronounced: el ah-beet ah Lon-dr)
Informal:
* Elle vit à Londres. (pronounced: el vee ah Lon-dr)
Both translations are correct and mean the same thing. "Habiter" is more formal than "vivre" and is often used in written French or when addressing someone you don't know well. "Vivre" is more common in spoken French and informal contexts.